##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, D.C.
    20549
      Form 10-Q
  (Mark One)þ

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934FOR THE
    QUARTERLY PERIOD ENDED JUNE 30, 2009ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934FOR THE TRANSITION PERIOD
    FROM          TO   Commission file number:
    33-03094
      MetLife Insurance Company of
    Connecticut
 (Exact name of registrant as
    specified in its charter)
  Connecticut

06-0566090(State or other jurisdiction
    of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)1300 Hall Boulevard, Bloomfield, Connecticut

06002(Address of principal executive
    offices)

(Zip Code)   (860) 656-3000
 (Registrants telephone
    number, including area code)
  þ o
  Regulation S-T o o
  Rule 12b-2
  Large accelerated
    filer  o

Accelerated
    filer  oNon-accelerated
    filer  þ
    (Do not check if a smaller reporting company)

Smaller reporting
    company o   Rule 12b-2 o þ
    REDUCED
    DISCLOSURE FORMAT
  The registrant meets the conditions set forth in General
    Instruction H(1)(a) and (b) of
    Form 10-Q
    and is, therefore, filing this
    Form 10-Q
    with the reduced disclosure format.




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##### 





Table of
    Contents
   
 PagePart I  Financial
    InformationItem 1. Financial Statements at
    June 30, 2009 (Unaudited) and December 31, 2008 and
    for the Three Months and Six Months Ended June 30, 2009 and
    2008 (Unaudited)


4Interim Condensed Consolidated Balance Sheets


4Interim Condensed Consolidated Statements of
    Income


5Interim Condensed Consolidated Statements of
    Stockholders Equity


6Interim Condensed Consolidated Statements of Cash
    Flows


8Notes to the Interim Condensed Consolidated
    Financial Statements


9Item 2. Managements Discussion and
    Analysis of Financial Condition and Results of Operations


88Item 3. Quantitative and Qualitative
    Disclosures About Market Risk


103Item 4(T). Controls and Procedures


112Part II  Other
    InformationItem 1. Legal Proceedings


112Item 1A. Risk Factors


113Item 6. Exhibits


118Signatures


119Exhibit Index


E-1EX-31.1EX-31.2EX-32.1EX-32.2   2




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Note
    Regarding Forward-Looking Statements
  Form 10-Q,
  Note
    Regarding Reliance on Statements in Our Contracts
  Form 10-Q,
  
    should not in all instances be treated as categorical statements
    of fact, but rather as a way of allocating the risk to one of
    the parties if those statements prove to be inaccurate;
    have been qualified by disclosures that were made to the other
    party in connection with the negotiation of the applicable
    agreement, which disclosures are not necessarily reflected in
    the agreement;
    may apply standards of materiality in a way that is different
    from what may be viewed as material to investors; and
    were made only as of the date of the applicable agreement or
    such other date or dates as may be specified in the agreement
    and are subject to more recent developments.  Form 10-Q
 3




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##### Table of Contents



Part I 
    Financial Information  Item 1.
    Financial
    Statements  MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
  Interim
    Condensed Consolidated Balance Sheets
  (In
    millions, except share and per share data)
  June 30, 2009


December 31, 2008AssetsInvestments:Fixed maturity securities
    available-for-sale,
    at estimated fair value (amortized cost: $41,606 and $39,601,
    respectively)

$
38,087


$
34,846Equity securities
    available-for-sale,
    at estimated fair value (cost: $589 and $673, respectively)


433



474Trading securities, at estimated fair value (cost: $518 and
    $251, respectively)


510



232Mortgage and consumer loans (net of valuation allowances of $61
    and $46, respectively)


4,263



4,447Policy loans


1,183



1,192Real estate and real estate joint ventures
    held-for-investment


515



608Other limited partnership interests


1,107



1,249Short-term investments


1,333



3,127Other invested assets


1,674



2,297Total investments


49,105



48,472Cash and cash equivalents


3,295



5,656Accrued investment income


469



487Premiums and other receivables


12,897



12,463Deferred policy acquisition costs and value of business acquired


5,675



5,440Current income tax recoverable


13



66Deferred income tax assets


1,745



1,843Goodwill


953



953Other assets


758



752Separate account assets


40,352



35,892Total assets

$
115,262


$
112,024Liabilities and Stockholders EquityLiabilities:Future policy benefits

$
21,030


$
20,213Policyholder account balances


37,149



37,175Other policyholder funds


2,228



2,085Short-term debt






300Long-term debt  affiliated


950



950Payables for collateral under securities loaned and other
    transactions


6,315



7,871Other liabilities


1,997



2,604Separate account liabilities


40,352



35,892Total liabilities


110,021



107,090Contingencies, Commitments and Guarantees (Note 7)Stockholders Equity:Common stock, par value $2.50 per share; 40,000,000 shares
    authorized; 34,595,317 shares issued and outstanding at
    June 30, 2009 and December 31, 2008


86



86Additional paid-in capital


6,719



6,719Retained earnings


509



965Accumulated other comprehensive loss


(2,073
)


(2,836
)Total stockholders equity


5,241



4,934Total liabilities and stockholders equity

$
115,262


$
112,024   See accompanying notes to the interim condensed consolidated
    financial statements.
 4




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
  Interim
    Condensed Consolidated Statements of Income
  (In
    millions)
  Three Months


Six MonthsEnded


EndedJune 30,


June 30,As Restated,





As Restated,2009


2008


2009


2008RevenuesPremiums

$
500


$
61


$
684


$
210Universal life and investment-type product policy fees


299



325



583



671Net investment income


621



685



1,061



1,347Other revenues


306



59



375



115Net investment gains (losses):Other-than-temporary
    impairments on fixed maturity securities


(195
)


(58
)


(316
)


(68
)Other-than-temporary
    impairments on fixed maturity securities transferred to other
    comprehensive loss


77







77



Other net investment gains (losses), net


(610
)


(68
)


(1,089
)


(103
)Total net investment gains (losses)


(728
)


(126
)


(1,328
)


(171
)Total revenues


998



1,004



1,375



2,172ExpensesPolicyholder benefits and claims


674



223



1,101



548Interest credited to policyholder account balances


310



288



610



596Other expenses


178



300



436



757Total expenses


1,162



811



2,147



1,901Income (loss) before provision for income tax


(164
)


193



(772
)


271Provision for income tax expense (benefit)


(68
)


51



(294
)


58Net income (loss)

$
(96
)

$
142


$
(478
)

$
213   See accompanying notes to the interim condensed consolidated
    financial statements.
 5




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
  Interim
    Condensed Consolidated Statement of Stockholders
    Equity
  (In
    millions)
  Accumulated Other Comprehensive LossNet





ForeignAdditional





Unrealized


Other-Than-


CurrencyCommon


Paid-in


Retained


Investment


Temporary


Translation


TotalStock


Capital


Earnings


Gains (Losses)


Impairments


Adjustments


EquityBalance at December 31, 2008

$
86


$
6,719


$
965


$
(2,682
)

$



$
(154
)

$
4,934Cumulative effect of changes in accounting principle, net of
    income tax (Note 1)










22







(22
)






Comprehensive income (loss):Net loss










(478
)














(478
)Other comprehensive income (loss):Unrealized gains (losses) on derivative instruments, net of
    income tax














(5
)










(5
)Unrealized investment gains (losses), net of related offsets and
    income tax














773



(33
)






740Foreign currency translation adjustments, net of income tax






















50



50Other comprehensive income (loss)


























785Comprehensive income (loss)


























307Balance at June 30, 2009

$
86


$
6,719


$
509


$
(1,914
)

$
(55
)

$
(104
)

$
5,241   See accompanying notes to the interim condensed consolidated
    financial statements.
 6




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
  Interim
    Condensed Consolidated Statement of Stockholders Equity
    For the Six Months Ended June 30, 2008
    (Unaudited)
  (In
    millions)
  Accumulated OtherComprehensive LossNet


ForeignAdditional





Unrealized


CurrencyCommon


Paid-in


Retained


Investment


Translation


TotalStock


Capital


Earnings


Gains (Losses)


Adjustments


EquityBalance at December 31, 2007

$
86


$
6,719


$
892


$
(361
)

$
12


$
7,348Comprehensive income (loss):Net income, As Restated










213











213Other comprehensive income (loss):Unrealized gains (losses) on derivative instruments, net of
    income tax














(1
)






(1
)Unrealized investment gains (losses), net of related offsets and
    income tax














(718
)






(718
)Foreign currency translation adjustments, net of income tax


















(3
)


(3
)Other comprehensive loss






















(722
)Comprehensive loss, As Restated






















(509
)Balance at June 30, 2008, As Restated

$
86


$
6,719


$
1,105


$
(1,080
)

$
9


$
6,839   See accompanying notes to the interim condensed consolidated
    financial statements.
 7




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
  Interim
    Condensed Consolidated Statements of Cash Flows
  (In
    millions)
  Six MonthsEndedJune 30,As Restated,2009


2008Cash flows from operating activitiesNet income (loss)

$
(478
)

$
213Adjustments to reconcile net income (loss) to net cash (used in)
    provided by operating activities:Depreciation and amortization expenses


14



14Amortization of premiums and accretion of discounts associated
    with investments, net


(23
)


(6
)Loss from sales of investments, net


1,328



175Undistributed equity earnings of real estate joint ventures and
    other limited partnership interests


103



(8
)Interest credited to policyholder account balances


610



596Universal life and investment-type product policy fees


(583
)


(671
)Change in accrued investment income


18



124Change in premiums and other receivables


(1,388
)


(414
)Change in deferred policy acquisition costs, net


(452
)


(10
)Change in insurance-related liabilities


927



320Change in trading securities


(231
)


Change in income tax recoverable


(244
)


38Change in other assets


163



314Change in other liabilities


(547
)


474Other, net


9



Net cash (used in) provided by operating activities


(774
)


1,159Cash flows from investing activitiesSales, maturities and repayments of:Fixed maturity securities


6,425



9,501Equity securities


31



89Mortgage and consumer loans


233



249Real estate and real estate joint ventures


2



13Other limited partnership interests


96



37Purchases of:Fixed maturity securities


(8,525
)


(9,016
)Equity securities


(26
)


(101
)Mortgage and consumer loans


(74
)


(378
)Real estate and real estate joint ventures


(23
)


(59
)Other limited partnership interests


(75
)


(251
)Net change in short-term investments


1,851



540Net change in other invested assets


(211
)


(191
)Net change in policy loans


9



(283
)Net cash (used in) provided by investing activities


(287
)


150Cash flows from financing activitiesPolicyholder account balances:Deposits


11,388



2,147Withdrawals


(10,861
)


(3,636
)Net change in short-term debt


(300
)


Long-term debt issued  affiliated






750Long-term debt repaid  affiliated






(435
)Debt issuance costs






(8
)Net change in payables for collateral under securities loaned
    and other transactions


(1,556
)


241Financing element on certain derivative instruments


(16
)


3Net cash used in financing activities


(1,345
)


(938
)Effect of change in foreign currency exchange rates on cash
    balances


45



5Change in cash and cash equivalents


(2,361
)


376Cash and cash equivalents, beginning of period


5,656



1,774Cash and cash equivalents, end of period

$
3,295


$
2,150Supplemental disclosures of cash flow information:Net cash paid (received) during the period for:Interest

$
39


$
28Income tax

$
(53
)

$
23   See accompanying notes to the interim condensed consolidated
    financial statements.
 8




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)Notes to the Interim Condensed Consolidated
    Financial Statements (Unaudited)
  1.
    Business,
    Basis of Presentation, and Summary of Significant Accounting
    Policies  Business
    Basis
    of Presentation
    (i)
    the estimated fair value of investments in the absence of quoted
    market values;(ii)
    investment impairments;(iii)
    the recognition of income on certain investment entities;(iv)
    the application of the consolidation rules to certain
    investments;(v)
    the existence and estimated fair value of embedded derivatives
    requiring bifurcation;(vi)
    the estimated fair value of and accounting for derivatives;(vii)
    the capitalization and amortization of deferred policy
    acquisition costs (DAC) and the establishment and
    amortization of value of business acquired (VOBA);(viii)
    the measurement of goodwill and related impairment, if any;(ix)
    the liability for future policyholder benefits;(x)
    accounting for income taxes and the valuation of deferred income
    tax assets;(xi)
    accounting for reinsurance transactions; and(xii)
    the liability for litigation and regulatory matters.      Consolidation of Variable Interest
    Entities  An Interpretation of Accounting Research
    Bulletin No. 51
 9




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
        Form 10-K
  Adoption
    of New Accounting Pronouncements
  Financial
    Instruments
  No. FAS 115-2 FAS 124-2, Recognition and Presentation of
    Other-Than-Temporary
    Impairments (FSP 115-2). FSP 115-2 other-than-temporary FSP 115-2
 10




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  FSP 115-2,
  FSP 115-2
  FSP 115-2,
  FSP 115-2 FSP 115-2
    
    FSP
    No. FAS 157-4,
    Determining Fair Value When the Volume and Level of Activity
    for the Asset or Liability Have Significantly Decreased and
    Identifying Transactions That Are Not Orderly(FSP 157-4),
    provides guidance on (1) estimating the fair value of an
    asset or liability if there was a significant decrease in the
    volume and level of trading activity for these assets or
    liabilities and (2) identifying transactions that are not
    orderly. Further,
    FSP 157-4
    requires disclosure in interim financial statements of the
    inputs and valuation techniques used to measure fair value. The
    adoption of
    FSP 157-4
    did not have an impact on the Companys consolidated
    financial statements. Additionally, the Company has provided all
    of the material required disclosures in its consolidated
    financial statements.
    FSP
    No. FAS 107-1
    and APB
    28-1,
    Interim Disclosures about Fair Value of Financial
    Instruments, requires interim financial instrument fair
    value disclosures similar to those included in annual financial
    statements. The Company has provided all of the material
    required disclosures in its consolidated financial statements.  Disclosures about
    Derivative Instruments and Hedging Activities An Amendment of FASB Statement No. 133
  No. FAS 140-3, Accounting for Transfers of Financial Assets and Repurchase
    Financing Transactions (FSP 140-3). FSP 140-3 FSP 140-3
 11




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Business
    Combinations and Noncontrolling Interests
  Business
    Combinations  A Replacement of FASB Statement
    No. 141 Accounting for Assets Acquired and Liabilities Assumed in a
    Business Combination That Arise from Contingencies Noncontrolling Interests in Consolidated Financial
    Statements  An Amendment of ARB No. 51
  
    All business combinations (whether full, partial or
    step acquisitions) result in all assets and
    liabilities of an acquired business being recorded at fair
    value, with limited exceptions.
    Acquisition costs are generally expensed as incurred;
    restructuring costs associated with a business combination are
    generally expensed as incurred subsequent to the acquisition
    date.
    The fair value of the purchase price, including the issuance of
    equity securities, is determined on the acquisition date.
    Assets acquired and liabilities assumed in a business
    combination that arise from contingencies are recognized at fair
    value if the acquisition date fair value can be reasonably
    determined. If the fair value is not estimable, an asset or
    liability is recorded if existence or incurrence at the
    acquisition date is probable and its amount is reasonably
    estimable.
    Changes in deferred income tax asset valuation allowances and
    income tax uncertainties after the acquisition date generally
    affect income tax expense.
    Noncontrolling interests (formerly known as minority
    interests) are valued at fair value at the acquisition
    date and are presented as equity rather than liabilities.
    Net income includes amounts attributable to noncontrolling
    interests.
    When control is attained on previously noncontrolling interests,
    the previously held equity interests are remeasured at fair
    value and a gain or loss is recognized.
    Purchases or sales of equity interests that do not result in a
    change in control are accounted for as equity transactions.
    When control is lost in a partial disposition, realized gains or
    losses are recorded on equity ownership sold and the remaining
    ownership interest is remeasured and holding gains or losses are
    recognized.    No. 08-6, Equity Method Investment Accounting Considerations (EITF 08-6). EITF 08-6 EITF 08-6
  No. 08-7, Accounting for Defensive Intangible Assets (EITF 08-7). EITF 08-7
 12




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  EITF 08-7
  No. FAS 142-3, Determination of the Useful Life of Intangible Assets (FSP 142-3). FSP 142-3 Goodwill and Other Intangible Assets FSP 142-3. FSP 142-3
  Other
    Pronouncements
  Subsequent Events
  Fair Value Measurements , FSP 157-2, Effective Date of FASB Statement No. 157 FSP 157-2
  No. 08-5, Issuers Accounting for Liabilities Measured at Fair
    Value with a Third-Party Credit Enhancement (EITF 08-5). EITF 08-5 EITF 08-5 EITF 08-5
  Future
    Adoption of New Accounting Pronouncements
    
    SFAS No. 166, Accounting for Transfers of Financial
    Assets(SFAS 166) eliminates the concept of
    a qualifying special purpose entity, eliminates the
    guaranteed mortgage securitization exception, changes the
    criteria for achieving sale accounting when transferring a
    financial asset and changes the initial recognition of retained
    beneficial interests. SFAS 166 also requires additional
    disclosures about transfers of financial assets, including
    securitized transactions, as well as a companys continuing
    involvement in transferred financial assets. The Company is
    currently evaluating the impact of SFAS 166 on its consolidated
    financial statements. 13




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
   
    SFAS No. 167, Amendments to FASB Interpretation
    No. 46(R)(SFAS 167) changes the
    determination of the primary beneficiary of a variable interest
    equity (VIE) from a quantitative model to a
    qualitative model. Under the new qualitative model, the primary
    beneficiary must have both the ability to direct the activities
    of the VIE and the obligation to absorb either losses or gains
    that could be significant to the VIE. SFAS 167 also changes
    when reassessment is needed, as well as requires enhanced
    disclosures, including the effects of a companys
    involvement with VIEs on its financial statements. The Company
    is currently evaluating the impact of SFAS 167 on its
    consolidated financial statements.  2.
    Investments  Fixed
    Maturity and Equity Securities
    Available-for-Sale
    June 30, 2009Cost or


Gross Unrealized


EstimatedAmortized





Temporary


OTTI


Fair


% ofCost


Gain


Loss


Loss


Value


Total(In millions)U.S. corporate securities

$
15,414


$
167


$
1,462


$
18


$
14,101



37.0
%Residential mortgage-backed securities


7,066



164



762



25



6,443



16.9Foreign corporate securities


6,760



123



596



6



6,281



16.5U.S. Treasury, agency and government guaranteed
    securities (1)


5,520



127



206







5,441



14.3Commercial mortgage-backed securities


2,831



14



461



24



2,360



6.2Asset-backed securities


2,530



18



433



25



2,090



5.5State and political subdivision securities


1,023



10



136







897



2.4Foreign government securities


462



25



13







474



1.2Total fixed maturity securities (2), (3)

$
41,606


$
648


$
4,069


$
98


$
38,087



100.0
%Non-redeemable preferred stock (2)

$
462


$
4


$
164


$



$
302



69.7
%Common stock


127



5



1







131



30.3Total equity securities

$
589


$
9


$
165


$



$
433



100.0
%   14




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MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  December 31, 2008Cost or








EstimatedAmortized


Gross Unrealized


Fair


% ofCost


Gain


Loss


Value


Total(In millions)U.S. corporate securities

$
15,440


$
126


$
2,335


$
13,231



38.0
%Residential mortgage-backed securities


7,901



124



932



7,093



20.4Foreign corporate securities


6,157



41



1,136



5,062



14.5U.S. Treasury, agency and government guaranteed
    securities (1)


3,407



926







4,333



12.4Commercial mortgage-backed securities


2,933



6



665



2,274



6.5Asset-backed securities


2,429



1



703



1,727



5.0State and political subdivision securities


880



2



225



657



1.9Foreign government securities


454



48



33



469



1.3Total fixed maturity securities (2), (3)

$
39,601


$
1,274


$
6,029


$
34,846



100.0
%Non-redeemable preferred stock (2)

$
551


$
1


$
196


$
356



75.1
%Common stock


122



1



5



118



24.9Total equity securities

$
673


$
2


$
201


$
474



100.0
%     (1)
    
    The Company has classified within the U.S. Treasury, agency and
    government guaranteed securities caption above certain corporate
    fixed maturity securities issued by U.S. financial institutions
    that are guaranteed by the Federal Deposit Insurance Corporation
    (FDIC) pursuant to the FDICs Temporary
    Liquidity Guarantee Program (FDIC Program) of
    $118 million at estimated fair value with unrealized gains
    of less than $1 million at June 30, 2009. The Company
    held no securities issued by U.S. financial institutions that
    are guaranteed pursuant to the FDIC Program at December 31,
    2008.(2)
    
    The Company classifies perpetual securities that have attributes
    of both debt and equity as fixed maturity securities if the
    security has a punitive interest rate
    step-up
    feature as it believes in most instances this feature will
    compel the issuer to redeem the security at the specified call
    date. Perpetual securities that do not have a punitive interest
    rate step-up
    feature are classified as non-redeemable preferred stock. Many
    of such securities have been issued by
    non-U.S.
    financial institutions that are accorded Tier 1 and Upper
    Tier 2 capital treatment by their respective regulatory
    bodies and are commonly referred to as perpetual hybrid
    securities. Perpetual hybrid securities classified as
    non-redeemable preferred stock held by the Company at
    June 30, 2009 and December 31, 2008 had an estimated
    fair value of $244 million and $304 million,
    respectively. In addition, the Company held $58 million and
    $52 million at estimated fair value at June 30, 2009
    and December 31, 2008, respectively, of other perpetual
    hybrid securities, primarily of U.S. financial institutions,
    also included in non-redeemable preferred stock. Perpetual
    hybrid securities held by the Company and included within fixed
    maturity securities (primarily within foreign corporate
    securities) at June 30, 2009 and December 31, 2008 had
    an estimated fair value of $520 million and
    $425 million, respectively. In addition, the Company held
    $16 million at estimated fair value at both June 30,
    2009 and December 31, 2008 of other perpetual hybrid
    securities, primarily U.S. financial institutions, included in
    U.S. corporate securities.(3)
    
    At June 30, 2009 and December 31, 2008, the Company
    also held $424 million and $385 million at estimated
    fair value, respectively, of redeemable preferred stock which
    have stated maturity dates. These securities, commonly referred
    to as capital securities, are primarily issued by
    U.S. financial institutions, have cumulative interest deferral
    features and are included in U.S. corporate securities within
    fixed maturity securities. 15




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
   Below-Investment-Grade or Non-Rated Fixed Maturity
    Securities.
  Non-Income Producing Fixed Maturity
    Securities.
  Fixed Maturity Securities Credit Enhanced by Financial
    Guarantee Insurers. sub-prime
  Concentrations of Credit Risk (Fixed Maturity
    Securities).
    Concentrations of Credit Risk Fixed Maturity
    Securities) U.S. and Foreign Corporate
    Securities.
 16




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    June 30, 2009


December 31, 2008Estimated


% of


Estimated


% ofFair Value


Total


Fair Value


Total(In millions)Foreign (1)

$
6,281



30.8
%

$
5,062



27.6
%Finance


3,160



15.5



3,397



18.6Utility


3,113



15.3



2,810



15.4Consumer


3,051



15.0



2,666



14.6Industrial


2,684



13.2



1,775



9.7Communications


1,436



7.0



1,305



7.1Other


657



3.2



1,278



7.0Total

$
20,382



100.0
%

$
18,293



100.0
%     (1)
    
    Includes U.S. Dollar-denominated debt obligations of foreign
    obligors, and other fixed maturity securities foreign
    investments.  Concentrations of Credit Risk (Fixed Maturity
    Securities)  Residential Mortgage-Backed
    Securities.
  June 30, 2009


December 31, 2008Estimated


% of


Estimated


% ofFair Value


Total


Fair Value


Total(In millions)Residential mortgage-backed securities:Collateralized mortgage obligations

$
4,323



67.1
%

$
5,028



70.9
%Pass-through securities


2,120



32.9



2,065



29.1Total residential mortgage-backed securities

$
6,443



100.0
%

$
7,093



100.0
%      17




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  sub-prime.
  Concentrations of Credit Risk (Fixed Maturity
    Securities)  Commercial Mortgage-Backed
    Securities.
  Concentrations of Credit Risk (Fixed Maturity
    Securities)  Asset-Backed
    Securities. sub-prime sub-prime Sub-prime sub-prime sub-prime
  Concentrations of Credit Risk (Equity
    Securities).
 18




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    June 30, 2009


December 31, 2008Amortized


Estimated


Amortized


EstimatedCost


Fair Value


Cost


Fair Value(In millions)Due in one year or less

$
1,162


$
1,125


$
993


$
966Due after one year through five years


6,933



6,728



6,337



5,755Due after five years through ten years


7,649



7,235



7,329



6,195Due after ten years


13,435



12,106



11,679



10,836Subtotal


29,179



27,194



26,338



23,752Mortgage-backed and asset-backed securities


12,427



10,893



13,263



11,094Total fixed maturity securities

$
41,606


$
38,087


$
39,601


$
34,846     Evaluating
    Investments for an
    Other-Than-Temporary
    Impairment
  security-by-security other-than-temporarily
  other-than-temporarily other-than-temporarily other-than-temporarily
 19




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    other-than-temporarily
  Net
    Unrealized Investment Gains (Losses)
    June 30, 2009


December 31, 2008(In millions)Fixed maturity securities that are temporarily impaired

$
(3,421
)

$
(4,755
)Fixed maturity securities with noncredit OTTI losses in other
    comprehensive loss


(98
)


Total fixed maturity securities


(3,519
)


(4,755
)Equity securities


(156
)


(199
)Derivatives


(15
)


12Short-term investments


(43
)


(100
)Other


(2
)


(3
)Subtotal


(3,735
)


(5,045
)Amounts allocated from:DAC and VOBA on which noncredit OTTI losses have been recognized


13



DAC and VOBA


688



916Subtotal


701



916Deferred income tax benefit on which noncredit OTTI losses have
    been recognized


30



Deferred income tax benefit


1,035



1,447Net unrealized investment gains (losses)

$
(1,969
)

$
(2,682
)    20




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Six MonthsEndedJune 30, 2009(In millions)Balance, end of prior period

$
(2,682
)Cumulative effect of change in accounting principle, net of
    income tax


(22
)Fixed maturity securities on which noncredit OTTI losses have
    been recognized


(62
)Unrealized investment gains (losses) during the period


1,408Unrealized investment gains (losses) relating to:DAC and VOBA on which noncredit OTTI losses have been recognized


11DAC and VOBA


(228
)Deferred income tax on which noncredit OTTI losses have been
    recognized


18Deferred income tax benefit


(412
)Balance, end of period

$
(1,969
)Change in net unrealized investment gains (losses)

$
713  21




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Continuous
    Gross Unrealized Loss and OTTI Loss for Fixed Maturity and
    Equity Securities
    Available-for-Sale
    by Sector
    June 30, 2009Equal to or GreaterLess than 12 Months


than 12 Months


TotalEstimated


Gross


Estimated


Gross


Estimated


GrossFair


Unrealized


Fair


Unrealized


Fair


UnrealizedValue


Loss


Value


Loss


Value


Loss(In millions, except number of securities)U.S. corporate securities

$
1,864


$
247


$
7,487


$
1,233


$
9,351


$
1,480Residential mortgage-backed securities


434



13



2,216



774



2,650



787Foreign corporate securities


1,002



87



2,585



515



3,587



602U.S. Treasury, agency and government guaranteed securities


2,540



149



793



57



3,333



206Commercial mortgage-backed securities


178



17



1,783



468



1,961



485Asset-backed securities


469



21



1,051



437



1,520



458State and political subdivision securities


194



22



415



114



609



136Foreign government securities


57



3



49



10



106



13Total fixed maturity securities

$
6,738


$
559


$
16,379


$
3,608


$
23,117


$
4,167Non-redeemable preferred stock

$
58


$
31


$
210


$
133


$
268


$
164Common stock


7



1











7



1Total equity securities

$
65


$
32


$
210


$
133


$
275


$
165Total number of securities in an unrealized loss position


2,096







1,792   22




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  December 31, 2008Equal to or GreaterLess than 12 Months


than 12 Months


TotalEstimated


Gross


Estimated


Gross


Estimated


GrossFair


Unrealized


Fair


Unrealized


Fair


UnrealizedValue


Loss


Value


Loss


Value


Loss(In millions, except number of securities)U.S. corporate securities

$
6,302


$
1,001


$
4,823


$
1,334


$
11,125


$
2,335Residential mortgage-backed securities


1,740



501



934



431



2,674



932Foreign corporate securities


2,684



517



1,530



619



4,214



1,136U.S. Treasury, agency and government guaranteed securities


34















34



Commercial mortgage-backed securities


1,485



289



679



376



2,164



665Asset-backed securities


961



221



699



482



1,660



703State and political subdivision securities


348



91



220



134



568



225Foreign government securities


229



21



20



12



249



33Total fixed maturity securities

$
13,783


$
2,641


$
8,905


$
3,388


$
22,688


$
6,029Equity securities

$
124


$
59


$
191


$
142


$
315


$
201Total number of securities in an unrealized loss position


2,634







1,340   Aging
    of Gross Unrealized Loss and OTTI Loss for Fixed Maturity and
    Equity Securities
    Available-for-Sale
    June 30, 2009Cost or


Gross


Number ofAmortized Cost


Unrealized Loss


SecuritiesLess than


20% or


Less than


20% or


Less than


20% or20%


more


20%


more


20%


more(In millions, except number of securities)Fixed Maturity Securities:Less than six months

$
4,522


$
1,598


$
198


$
441



1,089



138Six months or greater but less than nine months


746



2,799



38



924



114



211Nine months or greater but less than twelve months


1,291



2,016



72



759



539



187Twelve months or greater


12,903



1,409



1,021



714



1,163



162Total

$
19,462


$
7,822


$
1,329


$
2,838Equity Securities:Less than six months

$



$
48


$



$
16







263Six months or greater but less than nine months


9



87



2



33



4



7Nine months or greater but less than twelve months


6



172







71



8



12Twelve months or greater


21



97



3



40



6



8Total

$
36


$
404


$
5


$
160  23




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  December 31, 2008Cost or


Gross


Number ofAmortized Cost


Unrealized Loss


SecuritiesLess than


20% or


Less than


20% or


Less than


20% or20%


more


20%


more


20%


more(In millions, except number of securities)Fixed Maturity Securities:Less than six months

$
5,444


$
9,799


$
392


$
3,547



1,314



1,089Six months or greater but less than nine months


2,737



542



213



271



349



54Nine months or greater but less than twelve months


3,554



810



392



470



342



95Twelve months or greater


5,639



192



614



130



642



28Total

$
17,374


$
11,343


$
1,611


$
4,418Equity Securities:Less than six months

$
23


$
298


$
3


$
130



13



50Six months or greater but less than nine months


18



53



3



20



2



5Nine months or greater but less than twelve months






102







43







9Twelve months or greater


22







2







6



Total

$
63


$
453


$
8


$
193  24




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Concentration
    of Gross Unrealized Loss and OTTI Loss for Fixed Maturity and
    Equity Securities
    Available-for-Sale
    June 30, 2009

December 31, 2008Sector:U.S. corporate securities


34
%


37
%Residential mortgage-backed securities


18



15Foreign corporate securities


14



18Commercial mortgage-backed securities


11



11Asset-backed securities


11



11State and political subdivision securities


3



4Other


9



4Total


100
%


100
%Industry:Mortgage-backed


29
%


26
%Finance


27



25Asset-backed


11



11Consumer


8



10Utility


5



9Communications


5



7Foreign government


5



1Industrial


2



4Other


8



7Total


100
%


100
%
   Evaluating
    Temporarily Impaired Investments
     25




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    other-than-temporarily
           26




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
      other-than-temporary other-than-temporary
  Net
    Investment Gains (Losses)
  FSP 115-2. FSP 115-2,
     27




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
      Three Months


Six MonthsEnded


EndedJune 30,


June 30,2009


2008


2009


2008(In millions)Total losses on fixed maturity securities:Total OTTI losses recognized

$
(195
)

$
(58
)

$
(316
)

$
(68
)Less: Noncredit portion of OTTI losses transferred to and
    recognized in other comprehensive loss


77







77



Net OTTI losses on fixed maturity securities recognized in
    earnings


(118
)


(58
)


(239
)


(68
)Fixed maturity securities  net gains (losses) on
    sales and disposals


(20
)


(34
)


(60
)


(74
)Total losses on fixed maturity securities


(138
)


(92
)


(299
)


(142
)Other net investment gains (losses):Equity securities


(20
)


(3
)


(78
)


(12
)Mortgage and consumer loans


(6
)


(9
)


(20
)


(32
)Real estate and real estate joint ventures


(44
)






(55
)


(2
)Other limited partnership interests


(16
)






(66
)


(2
)Freestanding derivatives


(303
)


20



(481
)


76Embedded derivatives


(94
)


(45
)


(278
)


94Other


(107
)


3



(51
)


(151
)Total net investment gains (losses)

$
(728
)

$
(126
)

$
(1,328
)

$
(171
)    28




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Fixed Maturity Securities


Equity SecuritiesThree Months


Six Months


Three Months


Six MonthsEnded


Ended


Ended


EndedJune 30,


June 30,


June 30,


June 30,2009


2008


2009


2008


2009


2008


2009


2008(In millions)Proceeds

$
1,516


$
3,259


$
4,774


$
5,845


$
4


$
48


$
12


$
56Gross investment gains

$
24


$
15


$
71


$
42


$



$
5


$
1


$
5Gross investment losses


(44
)


(49
)


(131
)


(116
)


(3
)


(4
)


(4
)


(6
)Total OTTI losses recognized in earnings:Credit-related


(108
)


(58
)


(222
)


(68
)














Other (1)


(10
)






(17
)






(17
)


(4
)


(75
)


(11
)Total OTTI losses recognized in earnings


(118
)


(58
)


(239
)


(68
)


(17
)


(4
)


(75
)


(11
)Net investment gains (losses)

$
(138
)

$
(92
)

$
(299
)

$
(142
)

$
(20
)

$
(3
)

$
(78
)

$
(12
)     (1)
    
    Other OTTI losses recognized in earnings include impairments on
    equity securities, impairments on non-redeemable preferred
    securities classified within fixed maturity securities where the
    primary reason for the impairment was the severity and/or the
    duration of an unrealized loss position, and fixed maturity
    securities where there is an intent to sell or it is more likely
    than not that the Company will be required to sell the security
    before recovery of the decline in fair value.     29




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Three Months


Six MonthsEnded


EndedJune 30,


June 30,2009


2008


2009


2008(In millions)U.S. and foreign corporate securities:Communications

$
30


$



$
70


$
Finance


16



41



36



49Consumer


20



16



34



16Industrial










18



Utility


2







6



Total U.S. and foreign corporate securities


68



57



164



65Asset-backed securities


14



1



37



3Residential mortgage-backed securities


3







3



Commercial mortgage-backed securities


33







35



Total

$
118


$
58


$
239


$
68       Three Months

Six MonthsEnded

EndedJune 30,

June 30,2009

2008

2009

2008(In millions)Common stock

$
2


$
2


$
4


$
3Non-redeemable preferred stock


15



2



71



8Total

$
17


$
4


$
75


$
11  30




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Credit
    Loss Rollforward  Rollforward of the Cumulative
    Credit Loss Component of OTTI Loss Recognized in Earnings on
    Fixed Maturity Securities Still Held for Which a Portion of the
    OTTI Loss was Recognized in Other Comprehensive
    Loss
    Three MonthsEndedJune 30, 2009(In millions)Balance, beginning of period

$
Credit loss component of OTTI loss not reclassified to other
    comprehensive loss in the cumulative effect transition adjustment


92Additions:Initial impairments  credit loss OTTI recognized on
    securities not previously impaired


67Additional impairments  credit loss OTTI recognized
    on securities previously impaired


5Reductions:Due to sales (or maturities, pay downs or prepayments) of
    securities previously credit loss OTTI impaired


(5
)Balance, end of period

$
159   Net
    Investment Income
    Three Months


Six MonthsEnded


EndedJune 30,


June 30,2009


2008


2009


2008(In millions)Fixed maturity securities

$
525


$
626


$
1,036


$
1,277Equity securities


8



13



15



25Trading securities (1)


16







7



Mortgage and consumer loans


58



64



117



131Policy loans


20



17



41



33Real estate and real estate joint ventures (2)


(12
)


7



(58
)


14Other limited partnership interests (3)


30



19



(51
)


16Cash, cash equivalents and short-term investments


4



20



11



40International joint ventures






(1
)


(1
)


(2
)Other






(1
)


(1
)


(2
)Total investment income


649



764



1,116



1,532Less: Investment expenses


28



79



55



185Net investment income

$
621


$
685


$
1,061


$
1,347     (1)
    
    Net investment income from trading securities includes interest
    and dividends earned on trading securities in addition to the
    net realized gains (losses) and subsequent changes in estimated
    fair value recognized on trading 31




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  securities. During the three months and six months ended
    June 30, 2009, changes in estimated fair value were
    recognized in net investment income on certain equity securities
    within the trading securities portfolio, due to recovery in
    certain equity markets, in addition to interest and dividends
    earned and net realized gains (losses) on securities sold.(2)
    
    Net investment income from real estate joint ventures within the
    real estate and real estate joint ventures caption represents
    distributions for investments accounted for under the cost
    method and equity in earnings for investments accounted for
    under the equity method. Overall, for the three months and six
    months ended June 30, 2009, the net amount recognized were
    losses of $12 million and $58 million, respectively,
    resulting primarily from declining property valuations on real
    estate held by certain real estate investment funds that carry
    their real estate at fair value and operating losses incurred on
    real estate properties that were developed for sale by real
    estate development joint ventures, in excess of earnings from
    wholly-owned real estate. The commercial real estate properties
    underlying real estate investment funds have experienced
    declines in value driven by capital market factors and
    deteriorating market conditions, while the real estate
    development joint ventures have experienced fewer property sales
    due to declining real estate market fundamentals and decreased
    availability of real estate lending to finance transactions.(3)
    
    Net investment income from other limited partnership interests,
    including hedge funds, represents distributions from other
    limited partnership interests accounted for under the cost
    method and equity in earnings from other limited partnership
    interests accounted for under the equity method. Overall for the
    six months ended June 30, 2009, the net amount recognized
    were losses of $51 million, resulting principally from
    losses on equity method investments. Such earnings and losses
    recognized for other limited partnership interests are impacted
    by volatility in the equity and credit markets.    Securities
    Lending
   32




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Assets
    on Deposit and Pledged as Collateral
    June 30, 2009


December 31, 2008(In millions)Assets on deposit:Regulatory agencies (1)

$
21


$
23Assets pledged as collateral:Debt and funding agreements  FHLB of Boston (2)


434



1,284Derivative transactions (3)


40



66Total assets on deposit and pledged as collateral

$
495


$
1,373     (1)
    
    The Company had investment assets on deposit with regulatory
    agencies consisting primarily of fixed maturity and equity
    securities.(2)
    
    The Company has pledged fixed maturity securities in support of
    its debt and funding agreements with the Federal Home Loan Bank
    of Boston (FHLB of Boston). The nature of these
    Federal Home Loan Bank arrangements are described in Note 6
    of the Notes to the Consolidated Financial Statements to the
    2008 Annual Report.(3)
    
    Certain of the Companys invested assets are pledged as
    collateral for various derivative transactions as described in
    Note 3.    Trading
    Securities
       33




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Variable
    Interest Entities
    June 30, 2009


December 31, 2008Maximum





MaximumCarrying


Exposure


Carrying


ExposureAmount (1)


to Loss (2)


Amount (1)


to Loss (2)(In millions)Fixed maturity securities
    available-for-sale:U.S. corporate securities

$
185


$
185


$
182


$
182Foreign corporate securities


201



201



152



152Real estate joint ventures


33



40



41



41Other limited partnership interests


587



858



672



1,060Total

$
1,006


$
1,284


$
1,047


$
1,435     (1)
    
    See Note 1 of the Notes to the Consolidated Financial
    Statements included in the 2008 Annual Report for further
    discussion of the Companys accounting policies with
    respect to the basis for determining carrying value of these
    investments.(2)
    
    The maximum exposure to loss relating to the fixed maturity
    securities
    available-for-sale
    is equal to the carrying amounts or carrying amounts of retained
    interests. The maximum exposure to loss relating to the real
    estate joint ventures and other limited partnership interests is
    equal to the carrying amounts plus any unfunded commitments.
    Such a maximum loss would be expected to occur only upon
    bankruptcy of the issuer or investee.    Related
    Party Investment Transactions
   34




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Six MonthsEndedJune 30,2009


2008(In millions)Estimated fair value of assets transferred to affiliates

$



$
Amortized cost of assets transferred to affiliates

$



$
Net investment gains (losses) recognized on transfers

$



$
Estimated fair value of assets transferred from affiliates

$
143


$
230   3.
    Derivative
    Financial Instruments  Accounting
    for Derivative Financial Instruments
  over-the-counter
  over-the-counter
  over-the-counter over-the-counter over-the-counter
 35




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  over-the-counter
  Offsetting of Amounts
    Related to Certain Contracts
         36




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
             37




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
     38




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Primary
    Risks Managed by Derivative Financial Instruments and Non
    Derivative Financial Instruments
    June 30, 2009


December 31, 2008Current Market





Current MarketPrimary Underlying



Notional


or Fair Value (1)


Notional


or Fair Value (1)Risk Exposure

Instrument Type

Amount


Assets


Liabilities


Amount


Assets


Liabilities(In millions)Interest rate

Interest rate swaps

$
5,155


$
531


$
198


$
7,074


$
736


$
347Interest rate floors


8,486



115



47



12,071



494



Interest rate caps


4,006



25







3,513



1



Interest rate futures


422







1



1,064



4



11Interest rate forwards


630



8















Foreign currency

Foreign currency swaps


2,922



674



112



3,771



699



219Foreign currency forwards


74



1



1



92







9Credit

Swap spreadlocks














208







8Credit default swaps


992



35



18



648



19



8Equity market

Equity futures


179



1







370







5Equity options


813



203







813



248



Variance swaps


1,081



41



3



1,081



57



Total

$
24,760


$
1,634


$
380


$
30,705


$
2,258


$
607     (1)
    
    The estimated fair value of all derivatives in an asset position
    is reported within other invested assets in the consolidated
    balance sheets and the estimated fair value of all derivatives
    in a liability position is reported within other liabilities in
    the consolidated balance sheets.       39




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
                 40




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
          Hedging
    June 30, 2009


December 31, 2008Notional


Fair Value


Notional


Fair ValueDerivatives Designated as Hedging Instruments

Amount


Assets


Liabilities


Amount


Assets


Liabilities(In millions)Fair Value Hedges:Foreign currency swaps

$
1,048


$
350


$
45


$
707


$
68


$
133Interest rate swaps


227



12



3



138







28Subtotal


1,275



362



48



845



68



161Cash Flow Hedges:Foreign currency swaps


133



15



2



486



91



Interest rate forwards


630



8















Subtotal


763



23



2



486



91



Total qualifying hedges

$
2,038


$
385


$
50


$
1,331


$
159


$
161  41




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    June 30, 2009


December 31, 2008Derivatives Not Designated or

Notional


Fair Value


Notional


Fair ValueNot Qualifying as Hedging Instruments

Amount


Assets


Liabilities


Amount


Assets


Liabilities(In millions)Interest rate swaps

$
4,928


$
519


$
195


$
6,936


$
736


$
319Interest rate floors


8,486



115



47



12,071



494



Interest rate caps


4,006



25







3,513



1



Interest rate futures


422







1



1,064



4



11Foreign currency swaps


1,741



309



65



2,578



540



86Foreign currency forwards


74



1



1



92







9Swaps spreadlocks














208







8Credit default swaps


992



35



18



648



19



8Equity futures


179



1







370







5Equity options


813



203







813



248



Variance swaps


1,081



41



3



1,081



57



Total non-designated or non-qualifying derivatives

$
22,722


$
1,249


$
330


$
29,374


$
2,099


$
446     Three Months


Six MonthsEnded


EndedJune 30,


June 30,2009


2008


2009


2008(In millions)Qualifying hedges:Net investment income

$



$
(1
)

$
(1
)

$
(1
)Interest credited to policyholder account balances


9



2



17



3Non-qualifying hedges:Net investment gains (losses)






7



2



26Total

$
9


$
8


$
18


$
28   Fair
    Value Hedges
   42




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    IneffectivenessNet Investment Gains


Net Investment Gains


Recognized in NetDerivatives in Fair Value

Hedge Items in Fair Value

(Losses) Recognized


(Losses) Recognized


Investment GainsHedging Relationships

Hedging Relationships

for Derivatives


for Hedged Items


(Losses)(In millions)For the Three Months Ended June 30, 2009:Interest rate swaps:

Fixed maturity securities

$
1


$
(1
)

$
Policyholder account balances (1)


(4
)


4



Foreign currency swaps:Foreign-denominated
    policyholder account balances (2)


94



(95
)


(1
)Total

$
91


$
(92
)

$
(1
)For the Three Months Ended June 30, 2008:Total

$
(13
)

$
12


$
(1
)For the Six Months Ended June 30, 2009:Interest rate swaps:

Fixed maturity securities

$
6


$
(6
)

$
Policyholder account balances (1)


(7
)


6



(1
)Foreign currency swaps:Foreign-denominated
    policyholder account balances (2)


94



(94
)


Total

$
93


$
(94
)

$
(1
)For the Six Months Ended June 30, 2008:Total

$
9


$
(9
)

$
     (1)
    
    Fixed rate liabilities(2)
    
    Fixed rate or floating rate liabilities    Cash
    Flow Hedges
     43




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
      Three Months


Six MonthsEnded


EndedJune 30,


June 30,2009


2008


2009


2008(In millions)Other comprehensive income (loss), beginning of period

$
17


$
(19
)

$
20


$
(13
)Gains (losses) deferred in other comprehensive loss on the
    effective portion of cash flow hedges


(3
)


2



(46
)


36Amounts reclassified to net investment gains (losses)


(2
)


3



38



(37
)Other comprehensive income (loss), end of period

$
12


$
(14
)

$
12


$
(14
)    44




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Amount of Gains


Amount and Location of(Losses) Deferred


Gains (Losses)in Accumulated


Reclassified fromOther Comprehensive


Accumulated OtherIncome (Loss) on


Comprehensive IncomeDerivatives in Cash Flow Hedging Relationships

Derivatives


(Loss) into IncomeNet InvestmentGains (Losses)(In millions)For the Three Months Ended June 30, 2009:Foreign currency swaps

$
(11
)

$
2Interest rate forwards


8



Total

$
(3
)

$
2For the Three Months Ended June 30, 2008:Foreign currency swaps

$
2


$
(3
)Total

$
2


$
(3
)For the Six Months Ended June 30, 2009:Foreign currency swaps

$
(54
)

$
(38
)Interest rate forwards


8



Total

$
(46
)

$
(38
)For the Six Months Ended June 30, 2008:Foreign currency swaps

$
36


$
37Total

$
36


$
37   Non-Qualifying
    Derivatives and Derivatives for Purposes Other Than
    Hedging
   45




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Net InvestmentGains (Losses)(In millions)For the Three Months Ended June 30, 2009:Interest rate swaps

$
(95
)Interest rate floors


(58
)Interest rate caps


17Interest rate futures


(35
)Equity futures


(60
)Foreign currency swaps


72Foreign currency forwards


(6
)Equity options


(81
)Interest rate forwards


2Variance swaps


(13
)Swap spreadlocks


4Credit default swaps


(47
)Total

$
(300
)For the Three Months Ended June 30, 2008:

$
(14
)For the Six Months Ended June 30, 2009:Interest rate swaps

$
(134
)Interest rate floors


(242
)Interest rate caps


14Interest rate futures


(34
)Equity futures


(35
)Foreign currency swaps


21Foreign currency forwards


(2
)Equity options


(49
)Interest rate forwards


2Variance swaps


(19
)Swap spreadlocks


Credit default swaps


(27
)Total

$
(505
)For the Six Months Ended June 30, 2008:

$
21   Credit
    Derivatives
   46




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
      June 30, 2009


December 31, 2008Maximum








MaximumAmount of








Amount ofEstimated


Future





Estimated


Future


WeightedFair Value of


Payments under


Weighted


Fair Value of


Payments under


AverageRating Agency Designation of Referenced

Credit Default


Credit Default


Average Years


Credit Default


Credit Default


Years toCredit Obligations (1)

Swaps


Swaps (2)


to Maturity (3)


Swaps


Swaps (2)


Maturity (3)(In millions)Aaa/Aa/ASingle name credit default swaps (corporate)

$
1


$
25



4.5


$



$
25



5.0Credit default swaps referencing indices


2



345



3.7



(2
)


222



4.0Subtotal


3



370



3.8



(2
)


247



4.1BaaSingle name credit default swaps (corporate)






5



4.5







10



5.0Credit default swaps referencing indices






















Subtotal






5



4.5







10



5.0BaSingle name credit default swaps (corporate)














(1
)


20



0.7Credit default swaps referencing indices






















Subtotal














(1
)


20



0.7BSingle name credit default swaps (corporate)






20



0.2











Credit default swaps referencing indices






















Subtotal






20



0.2











Caa and lowerSingle name credit default swaps (corporate)






















Credit default swaps referencing indices






















Subtotal






















In or near defaultSingle name credit default swaps (corporate)






















Credit default swaps referencing indices






















Subtotal






















Total

$
3


$
395



3.6


$
(3
)

$
277



3.9     (1)
    
    The rating agency designations are based on availability and the
    midpoint of the applicable ratings among Moodys, S&P,
    and Fitch. If no rating is available from a rating agency, then
    the MetLife rating is used.(2)
    
    Assumes the value of the referenced credit obligations is zero.(3)
    
    The weighted average years to maturity of the credit default
    swaps is calculated based on weighted average notional amounts.  Credit
    Risk on Freestanding Derivatives
   47




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    over-the-counter
    over-the-counter and/or
  over-the-counter
  Fair Value (1) of Derivatives inNet Liability Position

Fair Value of Collateral Provided

Fair Value of Incremental CollateralJune 30, 2009

June 30, 2009

Provided Upon:Downgrade in the Companys CreditIncluded in

One Notch

Rating to a Level that Triggers FullFixed Maturity

Premiums and Other

Downgrade in the

Overnight Collateralization orSecurities (2)

Receivables

Companys Credit Rating

Termination of the Derivative Position(In millions)$22

$
4


$



$
2


$
20     (1)
    
    After taking into consideration the existence of netting
    agreements. 48




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
   (2)
    
    Included in fixed maturity securities in the consolidated
    balance sheet. The counterparties are permitted by contract to
    sell or repledge this collateral. At June 30, 2009, the
    Company did not provide any cash collateral.  over-the-counter
      Embedded
    Derivatives
      June 30, 2009


December 31, 2008(In millions)Net embedded derivatives within asset host contracts:Ceded guaranteed minimum benefit riders

$
985


$
2,062Call options in equity securities


(6
)


(36
)Net embedded derivatives within asset host contracts

$
979


$
2,026Net embedded derivatives within liability host contracts:Direct guaranteed minimum benefit riders

$
583


$
1,432Other


(22
)


(27
)Net embedded derivatives within liability host contracts

$
561


$
1,405  49




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Three Months


Six MonthsEnded


EndedJune 30,


June 30,2009


2008


2009


2008(In millions)Net investment gains (losses) (1)

$
(94
)

$
(45
)

$
(278
)

$
94     (1)
    
    Effective January 1, 2008, upon adoption of SFAS 157,
    the valuation of the Companys guaranteed minimum benefit
    riders includes an adjustment for the Companys own credit.
    Included in net investment gains (losses) for the three months
    and six months ended June 30, 2009 were losses of
    ($539) million and ($310) million, respectively, in
    connection with this adjustment, and for the three months and
    six months ended June 30, 2008, in connection with this
    adjustment, were gains (losses) of ($24) million and
    $75 million, respectively.  4.
    Deferred
    Policy Acquisition Costs and Value of Business
    Acquired    DAC


VOBA


Total(In millions)Balance, beginning of period

$
2,779


$
2,661


$
5,440Capitalizations


478







478Subtotal


3,257



2,661



5,918Less: Amortization related to:Net investment gains (losses)


(194
)


(55
)


(249
)Other expenses


173



104



277Total amortization


(21
)


49



28Less: Unrealized investment gains (losses)


41



176



217Less: Other


(2
)






(2
)Balance, end of period

$
3,239


$
2,436


$
5,675      50




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    DAC


VOBA


TotalJune 30, 2009


December 31, 2008


June 30, 2009


December 31, 2008


June 30, 2009


December 31, 2008(In millions)Individual:Traditional life

$
221


$
172


$
49


$
52


$
270


$
224Variable & universal life


1,245



1,179



849



851



2,094



2,030Annuities


1,746



1,416



1,536



1,755



3,282



3,171Subtotal


3,212



2,767



2,434



2,658



5,646



5,425Institutional:Group life


5



5



1



2



6



7Retirement & savings










1



1



1



1Subtotal


5



5



2



3



7



8Corporate & Other


22



7











22



7Total

$
3,239


$
2,779


$
2,436


$
2,661


$
5,675


$
5,440   5.
    Goodwill    June 30, 2009


December 31, 2008(In millions)Individual:Traditional life

$
12


$
12Variable & universal life


1



1Annuities


218



218Other


5



5Subtotal


236



236Institutional:Group life


3



3Retirement & savings


304



304Non-medical health & other


5



5Subtotal


312



312Corporate & Other(1)


405



405Total

$
953


$
953     (1)
    
    The allocation of the goodwill to the reporting units was
    performed at the time of the respective acquisition. The
    $405 million of goodwill within Corporate & Other
    represents the excess of the amounts MetLife paid to acquire
    subsidiaries and other businesses over the estimated fair value
    of their net assets at the date of acquisition. For purposes of
    goodwill impairment testing at March 31, 2009 and
    December 31, 2008, the $405 million of
    Corporate & Other goodwill has been attributed to the
    Individual and Institutional segment reporting units. The
    Individual segment was attributed $210 million (traditional
    life  $23 million, variable & 51




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  universal life  $11 million and
    annuities  $176 million), and the Institutional
    segment was attributed $195 million (group life 
    $2 million, retirement & savings 
    $186 million, and non-medical health &
    other  $7 million) at both March 31, 2009
    and December 31, 2008.             52




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
   6.
    Insurance  Insurance
    Liabilities
    Future Policy Benefits


Policyholder Account Balances


Other Policyholder FundsJune 30, 2009


December 31, 2008


June 30, 2009


December 31, 2008


June 30, 2009


December 31, 2008(In millions)InstitutionalGroup life

$
201


$
208


$
1,048


$
1,045


$
4


$
5Retirement & savings


12,482



12,042



8,714



11,511



2



Non-medical health & other


288



294











2



2IndividualTraditional Life


984



944











84



55Variable & universal life


800



678



5,655



5,456



1,865



1,791Annuities


1,331



1,215



21,137



18,905



25



30Other


1







94



72







Corporate & Other


4,943



4,832



501



186



246



202Total

$
21,030


$
20,213


$
37,149


$
37,175


$
2,228


$
2,085     Guarantees
     53




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    June 30, 2009


December 31, 2008In the


At


In the


AtEvent of Death


Annuitization


Event of Death


Annuitization(In millions, except years)Annuity Contracts(1)Return of Net DepositsSeparate account value


$12,328



N/A



$9,721



N/ANet amount at risk(2)


$2,236
(3)


N/A



$2,813
(3)


N/AAverage attained age of contractholders


63 years



N/A



62 years



N/AAnniversary Contract Value or Minimum ReturnSeparate account value


$34,568



$17,115



$27,572



$13,217Net amount at risk(2)


$8,322
(3)


$5,844
(4)


$9,876
(3)


$6,323
(4)Average attained age of contractholders


58 years



62 years



58 years



61 years   June 30, 2009


December 31, 2008Secondary Guarantees


Secondary Guarantees(In millions, except years)Universal and Variable Life Contracts(1)Account value (general and separate account)


$3,505



$2,917Net amount at risk(2)


$54,428
(3)


$43,237
(3)Average attained age of policyholders


58 years



58 years     (1)
    
    The Companys annuity and life contracts with guarantees
    may offer more than one type of guarantee in each contract.
    Therefore, the amounts listed above may not be mutually
    exclusive.(2)
    
    The net amount at risk is based on the direct amount at risk
    (excluding reinsurance).(3)
    
    The net amount at risk for guarantees of amounts in the event of
    death is defined as the current guaranteed minimum death benefit
    in excess of the current account balance at the balance sheet
    date.(4)
    
    The net amount at risk for guarantees of amounts at
    annuitization is defined as the present value of the minimum
    guaranteed annuity payments available to the contractholder
    determined in accordance with the terms of the contract in
    excess of the current account balance. 54




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
     Universal andVariable LifeAnnuity Contracts


ContractsGuaranteed


GuaranteedDeath


Annuitization


SecondaryBenefits


Benefits


Guarantees


Total(In millions)Direct:Balance, beginning of period

$
98


$
221


$
108


$
427Incurred guaranteed benefits


40



23



148



211Paid guaranteed benefits


(60
)










(60
)Balance, end of period

$
78


$
244


$
256


$
578Ceded:Balance, beginning of period

$
86


$
72


$



$
158Incurred guaranteed benefits


32



10



121



168Paid guaranteed benefits


(46
)










(46
)Balance, end of period

$
72


$
82


$
121


$
280Net:Balance, beginning of period

$
12


$
149


$
108


$
269Incurred guaranteed benefits


8



13



27



43Paid guaranteed benefits


(14
)










(14
)Balance, end of period

$
6


$
162


$
135


$
298     June 30, 2009


December 31, 2008(In millions)Mutual Fund Groupings:Equity

$
22,389


$
21,738Balanced


10,634



6,971Bond


2,458



2,280Money Market


1,697



1,715Specialty


646



228Total

$
37,824


$
32,932   7.
    Contingencies,
    Commitments and Guarantees  Contingencies
  Litigation
  and/or
 55




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
          Travelers Ins. Co., et al. v. Banc of America Securities
    LLC (S.D.N.Y., filed December 13, 2001).
   56




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  and/or and/or
  Commitments
  Commitments
    to Fund Partnership Investments
    Mortgage
    Loan Commitments
    Commitments
    to Fund Bank Credit Facilities and Private Corporate Bond
    Investments
    Other
    Commitments
    Guarantees
   57




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
   8.
    Other
    Expenses    Three Months


Six MonthsEnded


EndedJune 30,


June 30,2009


2008


2009


2008(In millions)Compensation

$
39


$
29


$
70


$
57Commissions


229



179



429



349Interest and debt issue costs


17



23



37



34Amortization of DAC and VOBA


(48
)


84



28



371Capitalization of DAC


(251
)


(204
)


(478
)


(381
)Rent, net of sublease income


1



1



2



2Insurance tax


8



10



18



20Other


183



178



330



305Total other expenses

$
178


$
300


$
436


$
757     9.
    Business
    Segment Information      58




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Corporate &For the Three Months Ended June 30, 2009:

Individual


Institutional


Other


Total(In millions)Statement of Income:RevenuesPremiums

$
101


$
399


$



$
500Universal life and investment-type product policy fees


281



15



3



299Net investment income


326



284



11



621Other revenues


305



1







306Net investment gains (losses):Other-than-temporary
    impairments on fixed maturity securities


(63
)


(105
)


(27
)


(195
)Other-than-temporary
    impairments on fixed maturity securities transferred to other
    comprehensive loss


21



42



14



77Other net investment gains (losses), net


(396
)


(154
)


(60
)


(610
)Total net investment gains (losses)


(438
)


(217
)


(73
)


(728
)Total revenues


575



482



(59
)


998ExpensesPolicyholder benefits and claims


110



564







674Interest credited to policyholder account balances


240



57



13



310Other expenses


136



10



32



178Total expenses


486



631



45



1,162Income (loss) before provision for income tax


89



(149
)


(104
)


(164
)Provision for income tax expense (benefit)


31



(52
)


(47
)


(68
)Net income (loss)

$
58


$
(97
)

$
(57
)

$
(96
)   59




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Corporate &For the Three Months Ended June 30, 2008, As
    Restated:

Individual


Institutional


Other


Total(In millions)Statement of Income:RevenuesPremiums

$
34


$
22


$
5


$
61Universal life and investment-type product policy fees


318



5



2



325Net investment income


286



354



45



685Other revenues


56



3







59Net investment gains (losses):Other-than-temporary
    impairments on fixed maturity securities


(12
)


(41
)


(5
)


(58
)Other-than-temporary
    impairments on fixed maturity securities transferred to other
    comprehensive loss














Other net investment gains (losses), net


(95
)


22



5



(68
)Total net investment gains (losses)


(107
)


(19
)






(126
)Total revenues


587



365



52



1,004ExpensesPolicyholder benefits and claims


82



131



10



223Interest credited to policyholder account balances


173



115







288Other expenses


254



13



33



300Total expenses


509



259



43



811Income before provision for income tax


78



106



9



193Provision for income tax expense


28



36



(13
)


51Net income

$
50


$
70


$
22


$
142   60




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Corporate &For the Six Months Ended June 30, 2009:

Individual


Institutional


Other


Total(In millions)Statement of Income:RevenuesPremiums

$
200


$
484


$



$
684Universal life and investment-type product policy fees


559



20



4



583Net investment income


564



531



(34
)


1,061Other revenues


372



3







375Net investment gains (losses):Other-than-temporary
    impairments on fixed maturity securities


(78
)


(173
)


(65
)


(316
)Other-than-temporary
    impairments on fixed maturity securities transferred to other
    comprehensive loss


21



42



14



77Other net investment gains (losses), net


(762
)


(336
)


9



(1,089
)Total net investment gains (losses)


(819
)


(467
)


(42
)


(1,328
)Total revenues


876



571



(72
)


1,375ExpensesPolicyholder benefits and claims


325



776







1,101Interest credited to policyholder account balances


480



124



6



610Other expenses


355



21



60



436Total expenses


1,160



921



66



2,147Loss before provision for income tax


(284
)


(350
)


(138
)


(772
)Income tax benefit


(100
)


(123
)


(71
)


(294
)Net loss

$
(184
)

$
(227
)

$
(67
)

$
(478
)   61




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Corporate &For the Six Months Ended June 30, 2008, As Restated:

Individual


Institutional


Other


Total(In millions)Statement of Income:RevenuesPremiums

$
89


$
110


$
11


$
210Universal life and investment-type product policy fees


653



16



2



671Net investment income


565



717



65



1,347Other revenues


112



3







115Net investment gains (losses):Other-than-temporary
    impairments on fixed maturity securities


(16
)


(47
)


(5
)


(68
)Other-than-temporary
    impairments on fixed maturity securities transferred to other
    comprehensive loss














Other net investment gains (losses), net


44



(175
)


28



(103
)Total net investment gains (losses)


28



(222
)


23



(171
)Total revenues


1,447



624



101



2,172ExpensesPolicyholder benefits and claims


205



325



18



548Interest credited to policyholder account balances


351



245







596Other expenses


685



27



45



757Total expenses


1,241



597



63



1,901Income before provision for income tax


206



27



38



271Provision for income tax expense


71



9



(22
)


58Net income

$
135


$
18


$
60


$
213     June 30, 2009


December 31, 2008(In millions)Individual

$
76,905


$
69,335Institutional


26,944



29,224Corporate & Other


11,413



13,465Total

$
115,262


$
112,024    62




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
   10.
    Fair
    Value    Fair
    Value of Financial Instruments
    Notional


Carrying


EstimatedJune 30, 2009

Amount


Value


Fair Value(In millions)Assets:Fixed maturity securities





$
38,087


$
38,087Equity securities





$
433


$
433Trading securities





$
510


$
510Mortgage and consumer loans





$
4,263


$
3,874Policy loans





$
1,183


$
1,246Real estate joint ventures (1)





$
69


$
72Other limited partnership interests (1)





$
136


$
150Short-term investments





$
1,333


$
1,333Other invested assets (2)

$
17,181


$
1,634


$
1,634Cash and cash equivalents





$
3,295


$
3,295Accrued investment income





$
469


$
469Premiums and other receivables (1)





$
4,406


$
3,133Net embedded derivatives within asset host contracts (3)





$
985


$
985Separate account assets





$
40,352


$
40,352Liabilities:Policyholder account balances (1)





$
24,780


$
21,377Long-term debt  affiliated





$
950


$
858Payables for collateral under securities loaned and other
    transactions





$
6,315


$
6,315Other liabilities: (1)Derivative liabilities

$
7,579


$
380


$
380Other





$
332


$
332Net embedded derivatives within liability host contracts (3)





$
561


$
561Separate account liabilities (1)





$
1,191


$
1,191Commitments: (4)Mortgage loan commitments

$
181


$



$
(13
)Commitments to fund bank credit facilities and private corporate
    bond investments

$
274


$



$
(49
)   63




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Notional


Carrying


EstimatedDecember 31, 2008

Amount


Value


Fair Value(In millions)Assets:Fixed maturity securities





$
34,846


$
34,846Equity securities





$
474


$
474Trading securities





$
232


$
232Mortgage and consumer loans





$
4,447


$
4,252Policy loans





$
1,192


$
1,296Real estate joint ventures (1)





$
92


$
103Other limited partnership interests (1)





$
189


$
247Short-term investments





$
3,127


$
3,127Other invested assets (2)

$
21,395


$
2,258


$
2,258Cash and cash equivalents





$
5,656


$
5,656Accrued investment income





$
487


$
487Premiums and other receivables (1)





$
3,171


$
2,700Net embedded derivatives within asset host contracts (3)





$
2,062


$
2,062Separate account assets





$
35,892


$
35,892Liabilities:Policyholder account balances  (1)





$
26,316


$
23,937Short-term debt





$
300


$
300Long-term debt  affiliated





$
950


$
671Payables for collateral under securities loaned and other
    transactions





$
7,871


$
7,871Other liabilities: (1)Derivative liabilities

$
9,310


$
607


$
607Other





$
158


$
158Net embedded derivatives within liability host contracts (3)





$
1,405


$
1,405Separate account liabilities (1)





$
1,181


$
1,181Commitments: (4)Mortgage loan commitments

$
231


$



$
(15
)Commitments to fund bank credit facilities and private corporate
    bond investments

$
332


$



$
(101
)     (1)
    
    Carrying values presented herein differ from those presented on
    the consolidated balance sheet because certain items within the
    respective financial statement caption are not considered
    financial instruments. Financial statement captions omitted from
    the table above are not considered financial instruments.(2)
    
    Other invested assets is comprised of freestanding derivatives
    with positive estimated fair values.(3)
    
    Net embedded derivatives within asset host contracts are
    presented within premiums and other receivables. Net embedded
    derivatives within liability host contracts are presented within
    policyholder account balances and other liabilities. At
    June 30, 2009 and December 31, 2008, equity securities
    also includes embedded derivatives of ($6) million and
    ($36) million, respectively.(4)
    
    Commitments are off-balance sheet obligations. Negative
    estimated fair values represent off-balance sheet liabilities. 64




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
     Fixed Maturity Securities, Equity Securities and Trading
    Securities
          Mortgage and Consumer Loans
  Policy Loans
  Real Estate Joint Ventures and Other Limited Partnership
    Interests
 65




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
      Short-term Investments
  Other Invested Assets
    Cash and Cash Equivalents
  Accrued Investment Income
  Premiums and Other Receivables
   66




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
      Separate Account Assets 03-1, Accounting and Reporting by Insurance Enterprises for Certain
    Nontraditional Long-Duration Contracts and for Separate Accounts (SOP 03-1).
  Policyholder Account Balances
    Affiliated Long-term Debt
  Payables for Collateral Under Securities Loaned and Other
    Transactions
 67




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Other Liabilities
      Separate Account Liabilities
    SOP 03-1.
  Derivatives over-the-counter
  over-the-counter over-the-counter
 68




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    over-the-counter
  over-the-counter
  Embedded Derivatives within Asset and Liability Host
    Contracts
     69




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
            Mortgage Loan Commitments and Commitments to Fund Bank
    Credit Facilities and Private Corporate Bond Investments
 70




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Assets
    and Liabilities Measured at Fair Value
  Recurring
    Fair Value Measurements
    June 30, 2009Fair Value Measurements at Reporting Date UsingQuoted Prices inActive Markets for





SignificantIdentical Assets


Significant Other


Unobservable


Totaland Liabilities


Observable Inputs


Inputs


Estimated(Level 1)


(Level 2)


(Level 3)


Fair Value(In millions)AssetsFixed maturity securities:U.S. corporate securities

$



$
12,550


$
1,551


$
14,101Residential mortgage-backed securities






6,428



15



6,443Foreign corporate securities






5,358



923



6,281U.S. Treasury, agency and government guaranteed securities


2,302



3,106



33



5,441Commercial mortgage-backed securities






2,255



105



2,360Asset-backed securities






1,604



486



2,090State and political subdivision securities






865



32



897Foreign government securities






454



20



474Total fixed maturity securities


2,302



32,620



3,165



38,087Equity securities:Common stock


54



70



7



131Non-redeemable preferred stock






48



254



302Total equity securities


54



118



261



433Trading securities


503



7







510Short-term investments (1)


639



380



2



1,021Derivative assets (2)


1



1,352



281



1,634Net embedded derivatives within asset host contracts (3)










985



985Separate account assets (4)


40,021



184



147



40,352Total assets

$
43,520


$
34,661


$
4,841


$
83,022LiabilitiesDerivative liabilities (2)

$
1


$
371


$
8


$
380Net embedded derivatives within liability host contracts (3)










561



561Total liabilities

$
1


$
371


$
569


$
941   71




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  December 31, 2008Fair Value Measurements at Reporting Date UsingQuoted Prices inActive Markets for





SignificantIdentical Assets


Significant Other


Unobservable


Totaland Liabilities


Observable Inputs


Inputs


Estimated(Level 1)


(Level 2)


(Level 3)


Fair Value(In millions)AssetsFixed maturity securities:U.S. corporate securities

$



$
11,830


$
1,401


$
13,231Residential mortgage-backed securities






7,031



62



7,093Foreign corporate securities






4,136



926



5,062U.S. Treasury, agency and government guaranteed securities


2,107



2,190



36



4,333Commercial mortgage-backed securities






2,158



116



2,274Asset-backed securities






1,169



558



1,727State and political subdivision securities






633



24



657Foreign government securities






459



10



469Total fixed maturity securities


2,107



29,606



3,133



34,846Equity securities:Common stock


40



70



8



118Non-redeemable preferred stock






38



318



356Total equity securities


40



108



326



474Trading securities


176



6



50



232Short-term investments (1)


1,171



1,952







3,123Derivative assets (2)


4



1,928



326



2,258Net embedded derivatives within asset host contracts (3)










2,062



2,062Separate account assets (4)


35,567



166



159



35,892Total assets

$
39,065


$
33,766


$
6,056


$
78,887LiabilitiesDerivative liabilities (2)

$
16


$
574


$
17


$
607Net embedded derivatives within liability host contracts (3)










1,405



1,405Total liabilities

$
16


$
574


$
1,422


$
2,012     (1)
    
    Short-term investments as presented in the tables above differ
    from the amounts presented in the consolidated balance sheet
    because certain short-term investments are not measured at
    estimated fair value (e.g. time deposits, money market funds,
    etc.). 72




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
   (2)
    
    Derivative assets are presented within other invested assets and
    derivative liabilities are presented within other liabilities.
    The amounts are presented gross in the tables above to reflect
    the presentation in the consolidated balance sheets, but are
    presented net for purposes of the rollforward in the following
    tables.(3)
    
    Net embedded derivatives within asset host contracts are
    presented within premiums and other receivables. Net embedded
    derivatives within liability host contracts are presented within
    policyholder account balances and other liabilities. At
    June 30, 2009 and December 31, 2008, equity securities
    also includes embedded derivatives of ($6) million and
    ($36) million, respectively.(4)
    
    Separate account assets are measured at estimated fair value.
    Investment performance related to separate account assets is
    fully offset by corresponding amounts credited to
    contractholders whose liability is reflected within separate
    account liabilities. Separate account liabilities are set equal
    to the estimated fair value of separate account assets as
    prescribed by
    SOP 03-1.    Level 1
    This category includes certain U.S. Treasury, agency and
    government guaranteed fixed maturity securities; exchange-traded
    common stock; trading securities and certain short-term money
    market securities. As it relates to derivatives, this level
    includes exchange-traded equity and interest rate futures.
    Separate account assets classified within this level principally
    include mutual funds. Also included are assets held within
    separate accounts which are similar in nature to those
    classified in this level for the general account.Level 2
    This category includes fixed maturity and equity securities
    priced principally by independent pricing services using
    observable inputs. Fixed maturity securities classified as
    Level 2 include most U.S. Treasury, agency and
    government guaranteed securities as well as the majority of
    U.S. and foreign corporate securities, residential
    mortgage-backed securities, commercial mortgage-backed
    securities, state and political subdivision securities, foreign
    government securities, and asset-backed securities. Equity
    securities classified as Level 2 securities consist
    principally of common stock and non-redeemable preferred stock
    where market quotes are available but are not considered
    actively traded. Short-term investments and trading securities
    included within Level 2 are of a similar nature to these
    fixed maturity and equity securities. As it relates to
    derivatives, this level includes all types of derivative
    instruments utilized by the Company with the exception of
    exchange-traded futures included within Level 1 and those
    derivative instruments with unobservable inputs as described in
    Level 3. Separate account assets classified within this
    level are generally similar to those classified within this
    level for the general account.Level 3
    This category includes fixed maturity securities priced
    principally through independent broker quotations or market
    standard valuation methodologies using inputs that are not
    market observable or cannot be derived principally from or
    corroborated by observable market data. This level primarily
    consists of less liquid fixed maturity securities with very
    limited trading activity or where less price transparency exists
    around the inputs to the valuation methodologies including:
    U.S. and foreign corporate securities  including
    below investment grade private placements; commercial
    mortgage-backed securities; and asset backed
    securities  including all of those supported by
    sub-prime
    mortgage loans. Equity securities classified as Level 3
    securities consist principally of non-redeemable preferred stock
    and common stock of companies that are privately held or of
    companies for which there has been very limited trading activity
    or where less price transparency exists around the inputs to the
    valuation. Short-term investments and trading securities
    included within Level 3 are of a similar nature to these
    fixed maturity and equity securities. As it relates to 73




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  derivatives this category includes: swap spreadlocks with
    maturities which extend beyond observable periods; equity
    variance swaps with unobservable volatility inputs or that are
    priced via independent broker quotations; foreign currency swaps
    priced through independent broker quotations; interest rate
    swaps with maturities which extend beyond the observable portion
    of the yield curve; credit default swaps based upon baskets of
    credits having unobservable credit correlations; equity options
    with unobservable volatility inputs; implied volatility swaps
    with unobservable volatility inputs; and interest rate caps
    referencing unobservable yield curves
    and/or which
    include liquidity and volatility adjustments. Separate account
    assets classified within this level are generally similar to
    those classified within this level for the general account;
    however, they also include other limited partnership interests.
    Embedded derivatives classified within this level include
    embedded derivatives associated with certain variable annuity
    riders and embedded derivatives related to funds withheld on
    ceded reinsurance. 74




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
     Fair Value Measurements Using Significant Unobservable Inputs
    (Level 3)Total Realized/UnrealizedGains (Losses) included in:


Purchases,Balance,





Other


Sales,


Transfer In


Balance,Beginning





Comprehensive


Issuances and


and/or Out


End ofof Period


Earnings (2, 3)


Income (Loss)


Settlements (4)


of Level 3 (5)


Period(In millions)For the Three Months Ended June 30, 2009:Fixed maturity securities:U.S. corporate securities

$
1,537


$
1


$
86


$
16


$
(89
)

$
1,551Residential mortgage-backed securities


48







1







(34
)


15Foreign corporate securities


759



(23
)


221



(16
)


(18
)


923U.S. Treasury, agency and government guaranteed securities


33



















33Commercial mortgage-backed securities


99



(12
)


19



(1
)






105Asset-backed securities


473



2



35



(20
)


(4
)


486State and political subdivision securities


27







5











32Foreign government securities


15



5















20Total fixed maturity securities

$
2,991


$
(27
)

$
367


$
(21
)

$
(145
)

$
3,165Equity securities:Common stock

$
8


$



$



$
(1
)

$



$
7Non-redeemable preferred stock


216



(16
)


70



(16
)






254Total equity securities

$
224


$
(16
)

$
70


$
(17
)

$



$
261Trading securities

$



$



$



$



$



$
Short-term investments

$
1


$



$



$
1


$



$
2Net derivatives (6)

$
328


$
(87
)

$



$
16


$
16


$
273Separate account assets (7)

$
142


$
5


$



$



$



$
147Net embedded derivatives (8)

$
484


$
(75
)

$



$
15


$



$
424For the Three Months Ended June 30, 2008:Fixed maturity securities:U.S. corporate securities

$
1,428


$
(14
)

$
(7
)

$
25


$
(5
)

$
1,427Residential mortgage-backed securities


472











(6
)


(332
)


134Foreign corporate securities


1,265



(4
)


3



(44
)


108



1,328U.S. Treasury, agency and government guaranteed securities






(1
)






50







49Commercial mortgage-backed securities


226



(3
)


(16
)










207Asset-backed securities


817



(4
)


8



(46
)


(10
)


765State and political subdivision securities


46







(2
)


9



(3
)


50Foreign government securities


59











(30
)


(15
)


14Total fixed maturity securities

$
4,313


$
(26
)

$
(14
)

$
(42
)

$
(257
)

$
3,974Equity securities:Common stock

$
35


$



$



$
(6
)

$



$
29Non-redeemable preferred stock


466



(4
)


1



(20
)


(1
)


442Total equity securities

$
501


$
(4
)

$
1


$
(26
)

$
(1
)

$
471Net derivatives (6)

$
155


$
(34
)

$



$
(14
)

$
(3
)

$
104Separate account assets (7)

$
174


$
3


$



$



$
(1
)

$
176Net embedded derivatives (8)

$
271


$
(45
)

$



$
33


$



$
259  75




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Fair Value Measurements Using Significant Unobservable Inputs
    (Level 3)Total Realized/UnrealizedGains (Losses) included in:


Purchases,Balance,


Impact of


Balance,





Other


Sales,


Transfer In


Balance,December 31,


SFAS 157


Beginning





Comprehensive


Issuances and


and/or Out


End of2007


Adoption (1)


of Period


Earnings (2, 3)


Income (Loss)


Settlements (4)


of Level 3 (5)


Period(In millions)For the Six Months Ended June 30, 2009:Fixed maturity securities:U.S. corporate securities









$
1,401


$
(24
)

$
(57
)

$
(10
)

$
241


$
1,551Residential mortgage-backed securities










62



(4
)


4



(17
)


(30
)


15Foreign corporate securities










926



(66
)


194



(45
)


(86
)


923U.S. Treasury, agency and government guaranteed securities










36







(2
)


(1
)






33Commercial mortgage-backed securities










116



(12
)


16



(15
)






105Asset-backed securities










558



(20
)


(2
)


(65
)


15



486State and political subdivision securities










24







5



3







32Foreign government securities










10











4



6



20Total fixed maturity securities









$
3,133


$
(126
)

$
158


$
(146
)

$
146


$
3,165Equity securities:Common stock









$
8


$



$



$
(1
)

$



$
7Non-redeemable preferred stock










318



(68
)


20



(16
)






254Total equity securities









$
326


$
(68
)

$
20


$
(17
)

$



$
261Trading securities









$
50


$



$



$
(50
)

$



$
Short-term investments









$



$



$



$
2


$



$
2Net derivatives (6)









$
309


$
(72
)

$



$
18


$
18


$
273Separate account assets (7)









$
159


$
(10
)

$



$
(2
)

$



$
147Net embedded derivatives (8)









$
657


$
(292
)

$



$
59


$



$
424For the Six Months Ended June 30, 2008:Fixed maturity securities:U.S. corporate securities

$
1,645


$



$
1,645


$
(19
)

$
(63
)

$
(75
)

$
(61
)

$
1,427Residential mortgage-backed securities


323







323



2



(12
)


(62
)


(117
)


134Foreign corporate securities


1,355







1,355



(13
)


(42
)


(136
)


164



1,328U.S. Treasury, agency and government guaranteed securities


19







19



(1
)






48



(17
)


49Commercial mortgage-backed securities


258







258



(3
)


(48
)










207Asset-backed securities


925







925



(9
)


(89
)


(56
)


(6
)


765State and political subdivision securities


44







44







(4
)


10







50Foreign government securities


33







33











(14
)


(5
)


14Total fixed maturity securities

$
4,602


$



$
4,602


$
(43
)

$
(258
)

$
(285
)

$
(42
)

$
3,974Equity securities:Common stock

$
35


$



$
35


$



$
(1
)

$
(5
)

$



$
29Non-redeemable preferred stock


521







521



(9
)


(42
)


(20
)


(8
)


442Total equity securities

$
556


$



$
556


$
(9
)

$
(43
)

$
(25
)

$
(8
)

$
471Net derivatives (6)

$
108


$



$
108


$
25


$



$
(29
)

$



$
104Separate account assets (7)

$
183


$



$
183


$
(5
)

$



$



$
(2
)

$
176Net embedded derivatives (8)

$
125


$
92


$
217


$
2


$



$
40


$



$
259  76




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    (1)
    
    Impact of SFAS 157 adoption represents the amount
    recognized in earnings as a change in estimate upon the adoption
    of SFAS 157 associated with Level 3 financial instruments
    held at January 1, 2008. Such amount was offset by a
    reduction to DAC of $30 million resulting in a net impact
    of $62 million. This net impact of $62 million along
    with a $3 million reduction in the estimated fair value of
    Level 2 freestanding derivatives results in a total net
    impact of adoption of SFAS 157 of $59 million as
    described in Note 1 of the Notes to the Consolidated
    Financial Statements included in the 2008 Annual Report.(2)
    
    Amortization of premium/discount is included within net
    investment income which is reported within the earnings caption
    of total gains/losses. Impairments charged to earnings are
    included within net investment gains (losses) which are reported
    within the earnings caption of total gains/losses. Lapses
    associated with embedded derivatives are included with the
    earnings caption of total gains/losses.(3)
    
    Interest and dividend accruals, as well as cash interest coupons
    and dividends received, are excluded from the rollforward.(4)
    
    The amount reported within purchases, sales, issuances and
    settlements is the purchase/issuance price (for purchases and
    issuances) and the sales/settlement proceeds (for sales and
    settlements) based upon the actual date purchased/issued or
    sold/settled. Items purchased/issued and sold/settled in the
    same period are excluded from the rollforward. For embedded
    derivatives, attributed fees are included within this caption
    along with settlements, if any.(5)
    
    Total gains and losses (in earnings and other comprehensive
    income (loss)) are calculated assuming transfers in and/or out
    of Level 3 occurred at the beginning of the period. Items
    transferred in and/or out in the same period are excluded from
    the rollforward.(6)
    
    Freestanding derivative assets and liabilities are presented net
    for purposes of the rollforward.(7)
    
    Investment performance related to separate account assets is
    fully offset by corresponding amounts credited to
    contractholders whose liability is reflected within separate
    account liabilities.(8)
    
    Embedded derivative assets and liabilities are presented net for
    purposes of the rollforward.(9)
    
    Amounts presented do not reflect any associated hedging
    activities. Actual earnings associated with Level 3,
    inclusive of hedging activities, could differ materially. 77




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
     Total Gains and LossesClassification of Realized/UnrealizedGains (Losses) included in EarningsNet


NetInvestment


InvestmentIncome


Gains (Losses)


Total(In millions)For the Three Months Ended June 30, 2009:Fixed maturity securities:U.S. corporate securities

$
1


$



$
1Foreign corporate securities






(23
)


(23
)Commercial mortgage-backed securities






(12
)


(12
)Asset-backed securities






2



2Foreign government securities






5



5Total fixed maturity securities

$
1


$
(28
)

$
(27
)Equity securities:Non-redeemable preferred stock

$



$
(16
)

$
(16
)Total equity securities

$



$
(16
)

$
(16
)Net derivatives

$



$
(87
)

$
(87
)Net embedded derivatives

$



$
(75
)

$
(75
)For the Three Months Ended June 30, 2008:Fixed maturity securities:U.S. corporate securities

$
1


$
(15
)

$
(14
)Foreign corporate securities


(1
)


(3
)


(4
)U.S. Treasury, agency and government guaranteed securities


(1
)






(1
)Commercial mortgage-backed securities


1



(4
)


(3
)Asset-backed securities






(4
)


(4
)Total fixed maturity securities

$



$
(26
)

$
(26
)Equity securities:Non-redeemable preferred stock

$



$
(4
)

$
(4
)Total equity securities

$



$
(4
)

$
(4
)Net derivatives

$



$
(34
)

$
(34
)Net embedded derivatives

$



$
(45
)

$
(45
)  78




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Total Gains and LossesClassification of Realized/UnrealizedGains (Losses) included in EarningsNet


NetInvestment


InvestmentIncome


Gains (Losses)


Total(In millions)For the Six Months Ended June 30, 2009:Fixed maturity securities:U.S. corporate securities

$
3


$
(27
)

$
(24
)Residential mortgage-backed securities






(4
)


(4
)Foreign corporate securities


(1
)


(65
)


(66
)Commercial mortgage-backed securities


1



(13
)


(12
)Asset-backed securities






(20
)


(20
)Total fixed maturity securities

$
3


$
(129
)

$
(126
)Equity securities:Non-redeemable preferred stock

$



$
(68
)

$
(68
)Total equity securities

$



$
(68
)

$
(68
)Net derivatives

$



$
(72
)

$
(72
)Net embedded derivatives

$



$
(292
)

$
(292
)For the Six Months Ended June 30, 2008:Fixed maturity securities:U.S. corporate securities

$
2


$
(21
)

$
(19
)Residential mortgage-backed securities






2



2Foreign corporate securities


(2
)


(11
)


(13
)U.S. Treasury, agency and government guaranteed securities


(1
)






(1
)Commercial mortgage-backed securities


2



(5
)


(3
)Asset-backed securities






(9
)


(9
)Total fixed maturity securities

$
1


$
(44
)

$
(43
)Equity securities:Non-redeemable preferred stock

$



$
(9
)

$
(9
)Total equity securities

$



$
(9
)

$
(9
)Net derivatives

$



$
25


$
25Net embedded derivatives

$



$
2


$
2  79




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Changes in Unrealized Gains (Losses)Relating to Assets Held atJune 30, 2009 and at June 30, 2008Net


NetInvestment


InvestmentIncome


Gains (Losses)


Total(In millions)For the Three Months Ended June 30, 2009:Fixed maturity securities:U.S. corporate securities

$
1


$
(6
)

$
(5
)Residential mortgage-backed securities










Foreign corporate securities






(19
)


(19
)U.S. Treasury, agency and government guaranteed securities










Commercial mortgage-backed securities






(25
)


(25
)Asset-backed securities






(15
)


(15
)State and political subdivision securities










Foreign government securities






5



5Total fixed maturity securities

$
1


$
(60
)

$
(59
)Equity securities:Common stock

$



$



$
Non-redeemable preferred stock










Total equity securities

$



$



$
Net derivatives

$



$
(91
)

$
(91
)Net embedded derivatives

$



$
(75
)

$
(75
)For the Three Months Ended June 30, 2008:Fixed maturity securities:U.S. corporate securities

$
1


$
(8
)

$
(7
)Residential mortgage-backed securities










Foreign corporate securities


(1
)


(4
)


(5
)U.S. Treasury, agency and government guaranteed securities


(1
)






(1
)Commercial mortgage-backed securities


1



(4
)


(3
)Asset-backed securities






(4
)


(4
)State and political subdivision securities










Foreign government securities










Total fixed maturity securities

$



$
(20
)

$
(20
)Equity securities:Common stock

$



$



$
Non-redeemable preferred stock






(3
)


(3
)Total equity securities

$



$
(3
)

$
(3
)Net derivatives

$



$
(27
)

$
(27
)Net embedded derivatives

$



$
(49
)

$
(49
)  80




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    Changes in Unrealized Gains (Losses)Relating to Assets Held atJune 30, 2009 and at June 30, 2008Net


NetInvestment


InvestmentIncome


Gains (Losses)


Total(In millions)For the Six Months Ended June 30, 2009:Fixed maturity securities:U.S. corporate securities

$
2


$
(25
)

$
(23
)Foreign corporate securities


(1
)


(63
)


(64
)U.S. Treasury, agency and government guaranteed securities










Commercial mortgage-backed securities


1



(26
)


(25
)Asset-backed securities






(36
)


(36
)Total fixed maturity securities

$
2


$
(150
)

$
(148
)Equity securities:Non-redeemable preferred stock

$



$
(19
)

$
(19
)Total equity securities

$



$
(19
)

$
(19
)Net derivatives

$



$
(73
)

$
(73
)Net embedded derivatives

$



$
(296
)

$
(296
)For the Six Months Ended June 30, 2008:Fixed maturity securities:U.S. corporate securities

$
2


$
(8
)

$
(6
)Foreign corporate securities


(2
)


(12
)


(14
)U.S. Treasury, agency and government guaranteed securities


(1
)






(1
)Commercial mortgage-backed securities


2



(4
)


(2
)Asset-backed securities






(6
)


(6
)Total fixed maturity securities

$
1


$
(30
)

$
(29
)Equity securities:Non-redeemable preferred stock

$



$
(3
)

$
(3
)Total equity securities

$



$
(3
)

$
(3
)Net derivatives

$



$
17


$
17Net embedded derivatives

$



$
(4
)

$
(4
)   Non-Recurring
    Fair Value Measurements
   81




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##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
        11.
    Related
    Party Transactions  Service
    Agreements
     82




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  Reinsurance
    Transactions
    Three Months


Six MonthsEnded


EndedJune 30,


June 30,As Restated





As Restated2009


2008


2009


2008(In millions)Assumed premiums

$
4


$
2


$
9


$
7Assumed fees, included in universal life and investment-type
    product policy fees

$
(1
)

$
34


$
21


$
78Assumed benefits, included in policyholder benefits and claims

$



$
7


$
13


$
18Assumed benefits, included in interest credited to policyholder
    account balances

$
15


$
14


$
30


$
28Assumed acquisition costs, included in other expenses

$
10


$
7


$
21


$
29Ceded premiums (1)

$
40


$
27


$
79


$
52Ceded fees, included in universal life and investment-type
    product policy fees (1)

$
53


$
86


$
86


$
160Amortization of unearned revenue associated with experience
    refund, included in universal life and investment-type product
    policy fees and premiums

$
9


$
10


$
19


$
20Income from deposit contracts, included in other revenues

$
279


$
20


$
323


$
40Ceded benefits, included in policyholder benefits and
    claims (1)

$
6


$
41


$
121


$
76Ceded benefits, included in interest credited to policyholder
    account balances

$
8


$
5


$
16


$
9Interest costs on ceded reinsurance, included in other
    expenses (1)

$
25


$
18


$
28


$
35     (1)
    
    In September 2008, MICCs parent, MetLife, Inc. completed a
    tax-free split-off of its majority owned subsidiary, Reinsurance
    Group of America, Incorporated (RGA). After the
    split-off, reinsurance transactions with RGA were no longer
    considered affiliated transactions. For purposes of comparison,
    the 2008 affiliated transactions with RGA have been removed from
    the presentation in the table above. Affiliated transactions
    with RGA for the three months ended June 30, 2008 include
    ceded premiums, ceded fees, ceded benefits and ceded interest
    costs of $3 million, $14 million, $17 million and
    $1 million, respectively, and for the six months ended
    June 30, 2008 include ceded premiums, ceded fees, ceded
    benefits and ceded interest costs of $6 million,
    $26 million, $34 million and $1 million,
    respectively.   83




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
       84




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    June 30, 2009


December 31, 2008(In millions)Affiliated recoverables:Deposit recoverables

$
4,286


$
3,041Future policy benefit recoverables


2,347



3,296Claim recoverables


17



13All other recoverables


106



197Total

$
6,756


$
6,547       12.
    June 30,
    2008 Restatement   85




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
    June 30, 2008As PreviouslyReported


As Restated(In millions)Balance Sheet:Assets:Deferred income tax assets

$
1,131


$
1,170Total assets

$
123,066


$
123,105Liabilities:Other policyholder funds

$
1,836


$
1,947Total liabilities

$
116,155


$
116,266Stockholders Equity:Retained earnings

$
1,177


$
1,105Total stockholders equity

$
6,911


$
6,839Total liabilities and stockholders equity

$
123,066


$
123,105   For the Three Months


For the Six MonthsEnded


EndedJune 30, 2008


June 30, 2008As Previously





As PreviouslyReported


As Restated


Reported


As Restated(In millions)Income Statement:Premiums

$
65


$
61


$
220


$
210Universal life and investment-type product policy fees

$
372


$
325


$
772


$
671Total revenues

$
1,055


$
1,004


$
2,283


$
2,172Income before provision for income tax

$
244


$
193


$
382


$
271Provision for income tax

$
69


$
51


$
97


$
58Net income

$
175


$
142


$
285


$
213   86




---



##### Table of Contents



MetLife
    Insurance Company of Connecticut
    (A Wholly-Owned Subsidiary of MetLife, Inc.)
    Notes to the Interim Condensed Consolidated Financial Statements
    (Unaudited)  (Continued)
  For the Six MonthsEndedJune 30, 2008As PreviouslyReported


As Restated(In millions)Statement of Cash Flows:Net income

$
285


$
213Universal life and investment-type product policy fees

$
(772
)

$
(671
)Change in insurance-related liabilities

$
189


$
320Change in income tax recoverable

$
77


$
38Net cash provided by operating activities

$
1,043


$
1,159Policyholder account balances:Deposits

$
2,268


$
2,147Net cash used in financing activities

$
(817
)

$
(938
)   13.
    Subsequent
    Event   87




---



##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  Form 10-Q. Form 10-K
    and/or
 88




---



##### Table of Contents



Business
    Summary
    of Critical Accounting Estimates
    (i)
    the estimated fair value of investments in the absence of quoted
    market values;(ii)
    investment impairments;(iii)
    the recognition of income on certain investment entities;(iv)
    the application of the consolidation rules to certain
    investments;(v)
    the existence and estimated fair value of embedded derivatives
    requiring bifurcation;(vi)
    the estimated fair value of and accounting for derivatives;(vii)
    the capitalization and amortization of DAC and the establishment
    and amortization of VOBA;  (viii)
    the measurement of goodwill and related impairment, if any;  (ix)
    the liability for future policyholder benefits;(x)
    accounting for income taxes and the valuation of deferred income
    tax assets;(xi)
    accounting for reinsurance transactions; and(xii)
    the liability for litigation and regulatory matters.   89




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##### Table of Contents



No. FAS 115-2 FAS 124-2, Recognition and Presentation of
    Other-Than-Temporary
    Impairments (FSP 115-2) ,
  Investment
    Impairments
  available-for-sale other-than-temporary case-by-case
    (i)
    the length of time and the extent to which the estimated fair
    value has been below cost or amortized cost;(ii)
    the potential for impairments of securities when the issuer is
    experiencing significant financial difficulties;(iii)
    the potential for impairments in an entire industry sector or
    sub-sector;(iv)
    the potential for impairments in certain economically depressed
    geographic locations;(v)
    the potential for impairments of securities where the issuer,
    series of issuers or industry has suffered a catastrophic type
    of loss or has exhausted natural resources;(vi)
    with respect to equity securities, whether the Companys
    ability and intent to hold the security for a period of time is
    sufficient to allow for the recovery of its value to an amount
    equal to or greater than cost or amortized cost;(vii)
    with respect to fixed maturity securities, whether the Company
    has the intent to sell or will more likely than not be required
    to sell a particular security before recovery of the decline in
    fair value below amortized cost;(viii)
    unfavorable changes in forecasted cash flows on mortgage-backed
    and asset-backed securities; and(ix)
    other subjective factors, including concentrations and
    information obtained from regulators and rating agencies. 90




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##### Table of Contents



other-than-temporary other-than-temporary other-than-temporary other-than-temporary other-than-temporary
    Deferred
    Policy Acquisition Costs and Value of Business
    Acquired
       91




---



##### Table of Contents



Three Months


Six MonthsEnded


EndedJune 30,


June 30,2009


2008


2009


2008(In millions)Investment return

$
28


$
(1
)

$
31


$
(14
)Separate account balances


39



(24
)


(66
)


(58
)Net investment gain (loss) related


105



100



249



2Expense






1



(4
)


2In-force/Persistency


6



(2
)


6



(7
)Other


43



(13
)


43



(12
)Total

$
221


$
61


$
259


$
(87
)     For the Three Months Ended June 30, 2009:
  
    The increase in equity markets during the quarter increased
    separate account balances resulting in an increase in expected
    future gross profits on variable universal life contracts and
    variable deferred annuity contracts resulting in a decrease of
    $39 million in DAC and VOBA amortization.
    The current period net investment losses decreased actual gross
    profits during the current period, resulting in decrease of
    $105 million in DAC and VOBA amortization. The net
    investment losses were primarily driven by current period
    investment portfolio losses as well as net derivative losses
    associated with the direct and ceded guarantee obligations.  For the Six Months Ended June 30, 2009:
  
    There is an increase of $66 million in DAC and VOBA
    amortization. This increase in amortization is due to the
    decrease in equity markets which lowered separate account
    balances resulting in a reduction in expected future gross
    profits on variable universal life contracts and variable
    deferred annuity contracts during the first quarter of 2009
    which more than offset the impact from the increase in the
    equity markets which resulted in a decrease in amortization
    during the second quarter of 2009.
    The current period net investment losses decreased actual gross
    profits during the current period, resulting in decrease of
    $249 million in DAC and VOBA amortization. The net
    investment losses were primarily driven by current period
    investment portfolio losses as well as net derivative losses
    associated with the direct and ceded guarantee obligations.   92




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Economic
    Capital
    Results
    of Operations
  Discussion
    of Results
    Six MonthsEndedJune 30,As Restated,2009


2008 (1)(In millions)RevenuesPremiums

$
684


$
210Universal life and investment-type product policy fees


583



671Net investment income


1,061



1,347Other revenues


375



115Net investment gains (losses):Other-than-temporary
    impairments on fixed maturity securities


(316
)


(68
)Other-than-temporary
    impairments on fixed maturity securities transferred to other
    comprehensive loss


77



Other net investment gains (losses), net


(1,089
)


(103
)Total net investment gains (losses)


(1,328
)


(171
)Total revenues


1,375



2,172ExpensesPolicyholder benefits and claims


1,101



548Interest credited to policyholder account balances


610



596Other expenses


436



757Total expenses


2,147



1,901Income (loss) before provision for income tax


(772
)


271Provision for income tax expense (benefit)


(294
)


58Net income (loss)

$
(478
)

$
213     (1)
    
    In 2007, the Company, through MLI-USA, entered into an indemnity
    reinsurance agreement with MetLife Reinsurance Company of
    Vermont (MRV), an affiliated entity, under which the
    Company ceded, on a coinsurance funds withheld basis, 90% quota
    share of certain universal life and level term business written
    in 2007 and 2008. The reinsurance agreement also includes an
    experience refund provision whereby some or all of the profits
    on the underlying reinsurance agreement are returned to the
    Company from MRV, through MLI-USA, during the first several
    years of the reinsurance agreement. The Company had recorded
    this experience refund as revenue for the six months ended
    June 30, 2008. Since the experience refund is effectively
    the net cost of reinsurance related to the agreement, it should
    have been recorded as unearned revenue and amortized over 93




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##### Table of Contents



the life of the reinsurance contract. Accordingly, in its 2008
    Annual Report, the Company restated its interim condensed
    consolidated financial statements for the six months ended
    June 30, 2008 to properly reflect the unearned revenue
    related to the experience refund. As a result of the foregoing,
    the Companys net income for the six months ended
    June 30, 2008 decreased by $72 million. The
    consolidated financial statements at and for the six months
    ended June 30, 2008, as presented herein, have been
    restated for the effects of such adjustments.  Net
    Income (Loss)
          
    Lower DAC amortization of $223 million, net of income tax,
    primarily due to current period net derivative and other
    investment portfolio losses.
    Higher universal life and investment-type product policy fees
    combined with other revenues of $112 million, net of income
    tax, primarily resulting from a $138 million increase in
    other revenues driven by an increase in the deposit receivable
    from an affiliated reinsurance treaty. The increase in the
    receivable was due to a refinement in the assumptions and
    methodology used to value the receivable. Partially offsetting
    this 94




---



##### Table of Contents



increase was a reduction in fees and other revenues primarily
    due to lower average separate account balances due to recent
    unfavorable equity market performance.  
    A decrease in policyholder benefits and claims of
    $4 million, net of income tax, primarily due to lower
    guaranteed annuity benefit rider costs and lower amortization of
    sales inducements.
    An increase in net investment income of $3 million, net of
    income tax, on blocks of business not driven by interest margins.    
    A decrease in interest margins of $148 million, net of
    income tax. Management attributes this to a decrease of
    $82 million, net of income tax, and $21 million, net
    of income tax, in the annuity business and variable and
    universal life business, respectively. Management also
    attributes this decrease to the retirement & savings,
    group life, and non-medical health & other businesses,
    which contributed $41 million, $2 million and
    $2 million, net of income tax, respectively. Interest
    margin is the difference between interest earned and interest
    credited to policyholder account balances. Interest earned
    approximates net investment income on investable assets
    attributed to the segment with minor adjustments related to the
    consolidation of certain separate accounts and other minor
    non-policyholder elements. Interest credited is the amount
    attributed to insurance products, recorded in policyholder
    benefits and claims, and the amount credited to policyholder
    account balances for investment-type products, recorded in
    interest credited to policyholder account balances. Interest
    credited on insurance products reflects the current period
    impact of the interest rate assumptions established at issuance
    or acquisition. Interest credited to policyholder account
    balances is subject to contractual terms, including some minimum
    guarantees. This tends to move gradually over time to reflect
    market interest rate movements and may reflect actions by
    management to respond to competitive pressures and, therefore,
    generally does not, but may, introduce volatility in expense.
    A decrease in net investment income of $38 million, net of
    income tax, primarily due to lower returns on other limited
    partnership interests and real estate joint ventures. The
    reduction in yields and the negative returns in the six months
    ended June 30, 2009 realized on other limited partnership
    interests were primarily due to a lack of liquidity and
    available credit in the financial markets, driven by volatility
    in the equity and credit markets. The decrease in yields and the
    negative returns in the first quarter of 2009 realized on real
    estate joint ventures was primarily from declining property
    valuations on real estate held by certain real estate investment
    funds that carry their real estate at fair value in excess of
    earnings from wholly-owned real estate. The commercial real
    estate properties underlying real estate investment funds have
    experienced declines in value driven by capital market factors
    and deteriorating market conditions, while the real estate
    development joint ventures have experienced fewer property sales
    due to declining real estate market fundamentals and decreased
    availability of real estate lending to finance transactions.
    A decrease in underwriting results of $29 million, net of
    income tax, primarily due to decreases in the
    retirement & savings and group and individual life
    products, partially offset by an increase in the non-medical
    health & other business. Underwriting results are
    generally the difference between the portion of premium and fee
    income intended to cover mortality, morbidity or other insurance
    costs, less claims incurred, and the change in insurance-related
    liabilities. Underwriting results are significantly influenced
    by mortality, morbidity or other insurance-related experience
    trends, as well as the reinsurance activity related to certain
    blocks of business. Consequently, results can fluctuate from
    period to period.
    Higher expenses of $14 million, net of income tax, were
    primarily due to higher non-deferrable volume related expenses
    and higher interest expenses, which decreased net income.
    An increase in interest credited to policyholder account
    balances of $9 million, net of income tax, due primarily to
    lower amortization of the  excess interest reserves on acquired
    annuity and universal life blocks of business.   95




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##### Table of Contents



Revenues
         96




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##### Table of Contents



Expenses
          Liquidity
    and Capital Resources
   97




---



##### Table of Contents



Liquidity Management.
  Liquidity Needs of the Business.
     98




---



##### Table of Contents



Securities Lending.
  Internal Asset Transfers.
    Derivatives and Collateral Financing
    Arrangements.
  Government Programs.
  Insurance
    Regulations
     99




---



##### Table of Contents



Adoption
    of New Accounting Pronouncements
  Fair
    Value and Financial Instruments
  FSP 115-2
  FSP 115-2,
  FSP 115-2
  FSP 115-2,
  FSP 115-2 FSP 115-2
    
    FSP
    No. FAS 157-4,
    Determining Fair Value When the Volume and Level of Activity
    for the Asset or Liability Have Significantly Decreased and
    Identifying Transactions That Are Not Orderly(FSP 157-4),
    provides 100




---



##### Table of Contents



guidance on (1) estimating the fair value of an asset or
    liability if there was a significant decrease in the volume and
    level of trading activity for these assets or liabilities and
    (2) identifying transactions that are not orderly. Further,
    FSP 157-4
    requires disclosure in interim financial statements of the
    inputs and valuation techniques used to measure fair value. The
    adoption of
    FSP 157-4
    did not have an impact on the Companys consolidated
    financial statements. Additionally, the Company has provided all
    of the material required disclosures in its consolidated
    financial statements.  
    FSP
    No. FAS 107-1
    and APB
    28-1,
    Interim Disclosures about Fair Value of Financial
    Instruments, requires interim financial instrument fair
    value disclosures similar to those included in annual financial
    statements. The Company has provided all of the material
    required disclosures in its consolidated financial statements.  Disclosures about
    Derivative Instruments and Hedging Activities An Amendment of FASB Statement No. 133
  No. FAS 140-3, Accounting for Transfers of Financial Assets and Repurchase
    Financing Transactions (FSP 140-3). FSP 140-3 FSP 140-3
  Business
    Combinations and Noncontrolling Interests
  Business
    Combinations  A Replacement of FASB Statement
    No. 141 Accounting for Assets Acquired and Liabilities Assumed in a
    Business Combination That Arise from Contingencies Noncontrolling Interests in Consolidated Financial
    Statements  An Amendment of ARB No. 51
  
    All business combinations (whether full, partial or
    step acquisitions) result in all assets and
    liabilities of an acquired business being recorded at fair
    value, with limited exceptions.
    Acquisition costs are generally expensed as incurred;
    restructuring costs associated with a business combination are
    generally expensed as incurred subsequent to the acquisition
    date.
    The fair value of the purchase price, including the issuance of
    equity securities, is determined on the acquisition date.
    Assets acquired and liabilities assumed in a business
    combination that arise from contingencies are recognized at fair
    value if the acquisition date fair value can be reasonably
    determined. If the fair value is not estimable, an asset or
    liability is recorded if existence or incurrence at the
    acquisition date is probable and its amount is reasonably
    estimable.
    Changes in deferred income tax asset valuation allowances and
    income tax uncertainties after the acquisition date generally
    affect income tax expense.
    Noncontrolling interests (formerly known as minority
    interests) are valued at fair value at the acquisition
    date and are presented as equity rather than liabilities.
    Net income includes amounts attributable to noncontrolling
    interests.
    When control is attained on previously noncontrolling interests,
    the previously held equity interests are remeasured at fair
    value and a gain or loss is recognized.
    Purchases or sales of equity interests that do not result in a
    change in control are accounted for as equity transactions. 101




---



##### Table of Contents




    When control is lost in a partial disposition, realized gains or
    losses are recorded on equity ownership sold and the remaining
    ownership interest is remeasured and holding gains or losses are
    recognized.    No. 08-6, Equity Method Investment Accounting Considerations (EITF 08-6). EITF 08-6 EITF 08-6
  No. 08-7, Accounting for Defensive Intangible Assets (EITF 08-7). EITF 08-7 EITF 08-7
  No. FAS 142-3, Determination of the Useful Life of Intangible Assets (FSP 142-3). FSP 142-3 Goodwill and Other Intangible Assets FSP 142-3. FSP 142-3
  Other
    Pronouncements
  Subsequent Events
  Fair Value Measurements FSP 157-2, Effective Date of FASB Statement No. 157 FSP 157-2
  No. 08-5, Issuers Accounting for Liabilities Measured at Fair
    Value with a Third-Party Credit Enhancement (EITF 08-5). EITF 08-5 EITF 08-5 EITF 08-5
 102




---



##### Table of Contents



Future
    Adoption of New Accounting Pronouncements
    
    SFAS No. 166, Accounting for Transfers of Financial
    Assets(SFAS 166) eliminates the concept of
    a qualifying special purpose entity, eliminates the
    guaranteed mortgage securitization exception, changes the
    criteria for achieving sale accounting when transferring a
    financial asset and changes the initial recognition of retained
    beneficial interests. SFAS 166 also requires additional
    disclosures about transfers of financial assets, including
    securitized transactions, as well as a companys continuing
    involvement in transferred financial assets. The Company is
    currently evaluating the impact of SFAS 166 on its consolidated
    financial statements.
    SFAS No. 167, Amendments to FASB Interpretation
    No. 46(R)(SFAS 167) changes the
    determination of the primary beneficiary of a VIE from a
    quantitative model to a qualitative model. Under the new
    qualitative model, the primary beneficiary must have both the
    ability to direct the activities of the VIE and the obligation
    to absorb either losses or gains that could be significant to
    the VIE. SFAS 167 also changes when reassessment is needed,
    as well as requires enhanced disclosures, including the effects
    of a companys involvement with VIEs on its financial
    statements. The Company is currently evaluating the impact of
    SFAS 167 on its consolidated financial statements.  Item 3.
    Quantitative
    and Qualitative Disclosures About Market Risk  Risk
    Management
      Enterprise Risk Management.
    
    implementing a Board of Directors approved corporate risk
    framework, which outlines the Companys approach for
    managing risk on an enterprise-wide basis;
    developing policies and procedures for managing, measuring,
    monitoring and controlling those risks identified in the
    corporate risk framework;
    establishing appropriate corporate risk tolerance levels;
    deploying capital on an economic capital basis; and
    reporting on a periodic basis to the Finance and Risk Policy
    Committee of the Companys Board of Directors, and with
    respect to credit risk to the Investment Committee of the
    Companys Board of Directors and various financial and
    non-financial senior management committees. 103




---



##### Table of Contents



Asset/Liability Management
    (ALM).
    Market
    Risk Exposures
    Interest Rates.
  Foreign Currency Exchange Rates. non-U.S. Dollar
  Equity Prices.
 104




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##### Table of Contents



Management
    of Market Risk Exposures
    Interest Rate Risk Management.
    Foreign Currency Exchange Rate Risk
    Management.
  
    The Companys Treasury Department is responsible for
    managing the exposure to investments in foreign subsidiaries.
    Limits to exposures are established and monitored by the
    Treasury Department and managed by the Investment Department.
    The Investment Department is responsible for managing the
    exposure to foreign currency investments. Exposure limits to
    unhedged foreign currency investments are incorporated into the
    standing authorizations granted to management by the Board of
    Directors and are reported to the Board of Directors on a
    periodic basis.
    The lines of business are responsible for establishing limits
    and managing any foreign exchange rate exposure caused by the
    sale or issuance of insurance products.    Equity Price Risk Management.
 105




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##### Table of Contents



Hedging Activities.
  
    Risks Related to Living Benefit Riders The
    Company uses a wide range of derivative contracts to hedge the
    risk associated with variable annuity living benefit riders.
    These hedges include equity and interest rate futures, interest
    rate, currency and equity variance swaps, interest rate and
    currency forwards, and interest rate option contracts.
    Minimum Interest Rate Guarantees For certain
    Company liability contracts, the Company provides the
    contractholder a guaranteed minimum interest rate. These
    contracts include certain fixed annuities and other insurance
    liabilities. The Company purchases interest rate floors to
    reduce risk associated with these liability guarantees.
    Reinvestment Risk in Long Duration Liability Contracts Derivatives are used to hedge interest rate risk
    related to certain long duration liability contracts, such as
    long-term care. Hedges include zero coupon interest rate swaps
    and swaptions.
    Foreign Currency Risk The Company uses
    currency swaps and forwards to hedge foreign currency risk.
    These hedges primarily swap foreign currency-denominated bonds
    or equity exposures to U.S. Dollars.
    General ALM Hedging Strategies In the
    ordinary course of managing the Companys asset/liability
    risks, the Company uses interest rate futures, interest rate
    swaps, interest rate caps, interest rate floors and inflation
    swaps. These hedges are designed to reduce interest rate risk or
    inflation risk related to the existing assets or liabilities or
    related to expected future cash flows.  Risk
    Measurement: Sensitivity Analysis
    
    the net present values of its interest rate sensitive exposures
    resulting from a 10% change (increase or decrease) in interest
    rates;
    the U.S. Dollar equivalent estimated fair values of the
    Companys foreign currency exposures due to a 10% change
    (increase or decrease) in foreign currency exchange
    rates; and
    the estimated fair value of its equity positions due to a 10%
    change (increase or decrease) in equity market prices. 106




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##### Table of Contents




    the market risk information is limited by the assumptions and
    parameters established in creating the related sensitivity
    analysis, including the impact of prepayment rates on mortgages;
    the derivatives that qualify as hedges, the impact on reported
    earnings may be materially different from the change in market
    values;
    the analysis excludes other significant real estate holdings and
    liabilities pursuant to insurance contracts; and
    the model assumes that the composition of assets and liabilities
    remains unchanged throughout the period.      June 30, 2009(In millions)Non-trading:Interest rate risk

$
808Foreign currency exchange rate risk

$
28Equity price risk

$
39Trading:Interest rate risk

$
1  107




---



##### Table of Contents



Sensitivity Analysis: Interest Rates.
  June 30, 2009Assuming a10% IncreaseNotional


Estimated


in the YieldAmount


Fair Value (3)


Curve(In millions)Assets:Fixed maturity securities





$
38,087


$
(757
)Equity securities






433



Trading securities






510



(1
)Mortgage and consumer loans, net






3,874



(18
)Policy loans






1,246



(9
)Real estate joint ventures (1)






72



Other limited partnership interests (1)






150



Short-term investments






1,333



Other invested assets:Derivative assets

$
17,181



1,634



(77
)Cash and cash equivalents






3,295



Accrued investment income






469



Premiums and other receivables






3,133



(78
)Net embedded derivatives within asset host contracts (2)






985



(186
)Mortgage loan commitments

$
181



(13
)


(1
)Commitments to fund bank credit facilities and private corporate
    bond investments

$
274



(49
)


Total Assets









$
(1,127
)Liabilities:Policyholder account balances





$
21,377


$
209Long-term debt  affiliated






858



25Payables for collateral under securities loaned and other
    transactions






6,315



Other liabilities:Derivative liabilities

$
7,579



380



(17
)Other






332



Net embedded derivatives within liability host contracts (2)






561



101Total Liabilities









$
318Net Change









$
(809
)   108




---



##### Table of Contents



June 30, 2009Assuming aAssets


Liabilities


Total


10% IncreaseNotional


Estimated


Notional


Estimated


Estimated


in the YieldAmount


Fair Value


Amount


Fair Value


Fair Value


Curve(In millions)Derivative Instruments:Interest rate swaps

$
2,023


$
531


$
3,132


$
(198
)

$
333


$
(51
)Interest rate floors


6,018



115



2,468



(47
)


68



(8
)Interest rate caps


4,000



25



6







25



10Interest rate futures


41







381



(1
)


(1
)


(9
)Interest rate forwards


630



8











8



(20
)Foreign currency swaps


2,080



674



842



(112
)


562



(9
)Foreign currency forwards


57



1



17



(1
)






Swap spreadlocks






















Credit default swaps


555



35



437



(18
)


17



Equity futures


179



1











1



Equity options


813



203











203



(6
)Variance swaps


785



41



296



(3
)


38



(1
)Total Derivative Instruments

$
17,181


$
1,634


$
7,579


$
(380
)

$
1,254


$
(94
)     (1)
    
    Represents only those investments accounted for using the cost
    method.(2)
    
    Embedded derivatives are recognized in the consolidated balance
    sheet in the same caption as the host contract.(3)
    
    Separate account assets and liabilities which are interest rate
    sensitive are not included herein as any interest rate risk is
    borne by the holder of the separate account.   109




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##### Table of Contents



Sensitivity Analysis: Foreign Currency Exchange
    Rates.
  June 30, 2009Assuming a 10%Increase inNotional


Estimated


the ForeignAmount


Fair Value (1)


Exchange Rate(In millions)Assets:Fixed maturity securities





$
38,087


$
(71
)Other invested assets:Derivative assets

$
17,181



1,634



(210
)Total Assets









$
(281
)Liabilities:Policyholder account balances





$
21,377


$
214Other liabilities:Derivative liabilities

$
7,579



380



39Total Liabilities









$
253Net Change









$
(28
)   June 30, 2009Assuming aAssets


Liabilities


Total


10% IncreaseNotional


Estimated


Notional


Estimated


Estimated


in the ForeignAmount


Fair Value


Amount


Fair Value


Fair Value


Exchange Rate(In millions)Derivative Instruments:Interest rate swaps

$
2,023


$
531


$
3,132


$
(198
)

$
333


$
1Interest rate floors


6,018



115



2,468



(47
)


68



Interest rate caps


4,000



25



6







25



Interest rate futures


41







381



(1
)


(1
)


Interest rate forwards


630



8











8



Foreign currency swaps


2,080



674



842



(112
)


562



(180
)Foreign currency forwards


57



1



17



(1
)






8Swap spreadlocks






















Credit default swaps


555



35



437



(18
)


17



Equity futures


179



1











1



Equity options


813



203











203



Variance swaps


785



41



296



(3
)


38



Total Derivative Instruments

$
17,181


$
1,634


$
7,579


$
(380
)

$
1,254


$
(171
)     (1)
    
    Estimated fair value presented in the table above represents the
    fair value of all financial instruments within this financial
    statement caption not necessarily those solely subject to
    foreign exchange risk. 110




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##### Table of Contents



Sensitivity Analysis: Equity Prices.
  June 30, 2009Assuming a10% IncreaseNotional


Estimated


in EquityAmount


Fair Value (1)


Prices(In millions)Assets:Equity securities





$
433


$
13Net embedded derivatives within asset host contracts (2)






985



(148
)Other invested assets:Derivative assets

$
17,181



1,634



(45
)Total Assets









$
(180
)Liabilities:Policyholder account balances





$
21,377


$
Net embedded derivatives within asset host contracts (2)






561



141Other liabilities:Derivative liabilities

$
7,579



380



Total Liabilities









$
141Net Change









$
(39
)   June 30, 2009Assuming aAssets


Liabilities


Total


10% IncreaseNotional


Estimated


Notional


Estimated


Estimated


in EquityAmount


Fair Value


Amount


Fair Value


Fair Value


Prices(In millions)Derivative Instruments:Interest rate swaps

$
2,023


$
531


$
3,132


$
(198
)

$
333


$
Interest rate floors


6,018



115



2,468



(47
)


68



Interest rate caps


4,000



25



6







25



Interest rate futures


41







381



(1
)


(1
)


Interest rate forwards


630



8











8



Foreign currency swaps


2,080



674



842



(112
)


562



Foreign currency forwards


57



1



17



(1
)






Swap spreadlocks






















Credit default swaps


555



35



437



(18
)


17



Equity futures


179



1











1



(18
)Equity options


813



203











203



(28
)Variance swaps


785



41



296



(3
)


38



1Total Derivative Instruments

$
17,181


$
1,634


$
7,579


$
(380
)

$
1,254


$
(45
)  111




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##### Table of Contents



(1)
    
    Estimated fair value presented in the table above represents the
    estimated fair value of all financial instruments within this
    financial statement caption not necessarily those solely subject
    to equity price risk.(2)
    
    Embedded derivatives are recognized in the consolidated balance
    sheet in the same caption as the host contract.    Item 4(T).
    Controls
    and Procedures  Rules 13a-15(e) 15d-15(e)
  Rule 13a-15(f)
 Part II 
    Other Information  Item 1.
    Legal
    Proceedings  Form 10-Q
  Travelers Ins. Co., et al. v. Banc of America Securities
    LLC (S.D.N.Y., filed December 13, 2001).
    and/or and/or
 112




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##### Table of Contents



Item 1A.
    Risk
    Factors  Form 10-Q
  Actions
    of the U.S. Government, Federal Reserve Bank of New York and
    Other Governmental and Regulatory Bodies for the Purpose of
    Stabilizing and Revitalizing the Financial Markets and
    Protecting Investors and Consumers May Not Achieve the Intended
    Effect or Could Adversely Affect the Competitive Position of
    MetLife, Inc. and its Subsidiaries
       113




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##### Table of Contents



The
    Determination of the Amount of Allowances and Impairments Taken
    on Our Investments is Highly Subjective and Could Materially
    Impact Our Results of Operations or Financial
    Position
    other-than-temporary case-by-case
   114




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##### Table of Contents



sub-sector;
  Defaults,
    Downgrades or Other Events Impairing the Value of Our Fixed
    Maturity Securities Portfolio May Reduce Our
    Earnings
    Our
    Insurance Businesses Are Heavily Regulated, and Changes in
    Regulation May Reduce Our Profitability and Limit Our
    Growth
  non-U.S. insurance
    
    licensing companies and agents to transact business;
    calculating the value of assets to determine compliance with
    statutory requirements;
    mandating certain insurance benefits; 115




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##### Table of Contents




    regulating certain premium rates;
    reviewing and approving policy forms;
    regulating unfair trade and claims practices, including through
    the imposition of restrictions on marketing and sales practices,
    distribution arrangements and payment of inducements;
    regulating advertising;
    protecting privacy;
    establishing statutory capital and reserve requirements and
    solvency standards;
    fixing maximum interest rates on insurance policy loans and
    minimum rates for guaranteed crediting rates on life insurance
    policies and annuity contracts;
    approving changes in control of insurance companies;
    restricting the payment of dividends and other transactions
    between affiliates; and
    regulating the types, amounts and valuation of investments.      and/or
  and/or and/or
 116




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##### Table of Contents



Changes
    in Tax Laws, Tax Regulations, or Interpretations of Such Laws or
    Regulations Could Increase Our Corporate Taxes; Changes in Tax
    Laws Could Make Some of Our Products Less Attractive to
    Consumers
       117




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##### Table of Contents



Item 6.
    Exhibits  ExhibitNo.

Description31
.1

Certification of President pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.31
.2

Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.32
.1

Certification of President pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002.32
.2

Certification of Chief Financial Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.  118




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##### Table of Contents



Signatures      By:
    /s/  Peter
    M. Carlson   Title:
    Executive Vice-President, Finance Operations and     119




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##### Table of Contents



Exhibit Index  ExhibitNo.

Description31
.1

Certification of President pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002.31
.2

Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.32
.1

Certification of President pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002.32
.2

Certification of Chief Financial Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.  E-1